Higher equity-market valuations boosted wealth-management units at Citigroup, Wells Fargo, and JPMorgan Chase, which like other large banks have been trying to expand those businesses to capture the steady fee income they generate.
Wells Fargo’s wealth and investment-management unit reported third-quarter net income of $591 million, up 12% year over year. Total client assets rose 8% to $2.4 trillion.
Executives said on a conference call Tuesday morning that they are striving to increase the unit’s revenue by pursuing more banking and lending business with wealth-management clients. The unit’s net interest income—the difference between what the company earns on interest-bearing assets and what it pays in interest on deposits—rose 16% to $974 million.
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