Wells Fargo reported net income of $5.7 billion, or $1.03 a share, during the second quarter, in line with what the bank reported a year ago and with analysts’ estimates. The firm’s revenue of $21.3 billion, up 1 percent from a year ago, missed analysts’ expectations by $390 million.
Meanwhile, it was the bank's strongest quarter over the past five for brokerage, trust and investment management, Chief Financial Officer John Shrewsberry said on a conference call Tuesday morning.
The wealth, brokerage and retirement business earned $602 million in the second quarter, up 11 percent from a year ago and 7 percent sequentially.
“Revenue grew 5 percent from a year ago, driven by higher recurring sources of revenue,” Shrewsberry said.
Brokerage advisory assets grew to $434 billion, up 6 percent from a year ago, driven primarily by net flows. Wealth management assets increased 2 percent year-over-year to $224 million.
The segment’s pre-tax margin was 26 percent, exceeding the firm’s long-term target of 25 percent.
The firm added 17 net new advisors during the quarter, bringing total headcount to 15,151.