Wells Fargos wealth, brokerage and retirement business units earned $337 million in the first quarter of 2013, up 14% from last year but down 4% from the previous quarter, the bank announced Friday.
The business units generated $3.2 billion in first-quarter revenue, representing a 4% increase from the first quarter of 2012 and a 3% increase from the fourth quarter of 2012. Brokerage advisory commissions and fees accounted for the lions share of the revenue, bringing in $2.05 billion, or 12% more than they did the same period last year.
The retail brokerage business, the largest of the three units, had client assets totaling $1.3 trillion, up 7% from 2012. Its managed account assets jumped 16% to $46 billion driven by strong net inflows and market performance, according to the banks earnings release.
The wealth management unit grew client assets to $208 billion, or 3% from 2012, while the retirement unit grew assets 9% in both institutional retirement plans and IRAs to $279 billion and $314 billion, respectively.
Overall, Wells Fargo earned $5.2 billion in profit in the first quarter of 2013, up from $4.2 billion in the same quarter last year. Diluted earnings per share were 92 cents for the quarter, up from 75 cents a year ago.
Our company earned $5.2 billion in first quarter 2013, the highest quarterly profit in our historyanother milestone demonstrating how Well Fargos diversified business model continued to produce outstanding results, Wells Fargos CFO Tim Sloan said in a statement.
Sloan made note of the strong revenue growth in the brokerage advisory business. We continue to be pleased with the revenue growth in many of our core businesses, as evidenced by the strong year-over-year growth in brokerage advisory and commission fees, investment banking, card fees, and deposit service charges, all of which were up over 10 percent. Thats the benefit of our diversified business model and among the many drivers of our continued success, he said.
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