U.S. Bank's wealth management businesses delivered another vigorous quarter, according to the bank's financial results released on Wednesday.
The Minneapolis-based bank generated $716 million in first-quarter revenue from wealth management and investment services, up a notable 10.3% year-over-year. Revenue was also up from the previous quarter, rising 3%.
Profits from the businesses were even more robust, climbing 39.1% to $217 million from $156 million in the same quarter a year ago.
The increase in first-quarter revenue was due in part to an uptick in trust and investment management fees, which increased 8.2% year-over-year due to business growth, net asset inflows and favorable market conditions, the bank explained in the earnings release.
U.S. Bank's wealth management and investment services are delivered through five distinct businesses, including U.S. Bancorp Wealth Management. The services range from private banking, investment and retail brokerage to financial advisory, insurance, trust, custody and fund servicing, the bank said.
Of the five businesses, U.S. Bancorp Wealth Management was the second leading revenue generator, bringing in $226 million, or 31.6% of the total $716 million posted in the first quarter. Revenue from wealth management was up 11.3% year-over-year and up 4.1% from the prior quarter.
Overall, U.S. Bank's parent company earned $1.67 billion, or 96 cents per diluted common share, in the first quarter, compared with $1.47 billion, or 82 cents per diluted common share, in the same quarter a year ago.
“We continue to invest for the future and I’m pleased with the progress we are making on initiatives aimed at advancing our digital offerings and expanding our treasury management and payment services capabilities,” U.S. Bank CEO Andy Cecere said in the release.