Wells Fargo & Co (WFC) is seeing strong growth in its Wealth, Brokerage & Retirement division, which now accounts for 17% of company revenue and 9% of earnings, according to David Carroll, the Senior EVP of Wealth, Brokerage & Retirement at Wells Fargo. He was speaking at the 33rd annual BancAnalysts Association of Boston conference at the Langham Hotel.
The 17% revenue share is derived from trust and investment fees, accounting for 74%, and net interest income, 22%, Carroll said. The 4% remainder comes from miscellaneous revenue sources that were not broken out. WBR net income is up 34.1% from 2009-2013, while total revenue is up 5.2% over the same period.
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The WBR division offers retail brokerage services; wealth management for affluent and high-net-worth clients; comprehensive wealth management for ultra-high-net-worth families and individuals, foundation and endowments; and institutional retirement and trust services, including 401(k) and pension plan record-keeping.
“We’re all here to help our customers succeed financially,” said Carroll, who added that the goal is applied to “every product we sell, every service we offer” through the company’s businesses.
Carroll emphasized what he termed “long-term sustainable advantages” in Wells Fargo growth, as the company seeks to leverage its 6,615 retail banking outlets and 1,380 Wells Fargo Advisors serving 3.2 million households. Carroll claimed that Wells Fargo growth can be sustained without regard to economic conditions, thanks to its best practices and multiple businesses.
Wells Fargo reported third quarter earnings of $5.7 billion and EPS of $1.02, both up 3% year over year. Its period-end loans were up $29.7 billion, or 4% year over year, with period-end deposits up $88.8 billion, up 9% year over year. The company reports an ROA of 1.40% and ROE of 13.10%.
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