Wells Fargo wealth and investment management saw client assets increase 20% year-on-year to hit $2.1trn in Q2 2021.
In addition, average loans reached $81.8bn and average deposits were $175bn, year-on-year increases of 5% and 6% respectively.
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Furthermore, revenue increased 10% compared to the same point last year. This was attributed to higher asset-based fees on higher market valuations, offset by lower net interest income as a result of lower interest rates.
Net income totalled $465m in Q2 2021 for Wells Fargo wealth and investment management, up a staggering 198% year-on-year.
For the bank as a whole, total revenue was $20.27bn, compared to $18.29bn in Q2 2020. Also, net income was $6.04bn, compared to the $3.85bn loss in the same time period in 2020.
Chief executive Charlie Scharf said: “Wells Fargo benefited from the continued economic recovery, strong markets that helped drive gains in our affiliated venture capital businesses, and our progress on improving efficiency, but the headwinds of low interest rates and tepid loan demand remained.
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By GlobalData“Credit quality continued to be exceptionally strong. Our results included a $1.6 billion pre-tax reduction in the allowance for credit losses, and charge-offs continued to decline. While we expect charge-offs will increase at some point, we continue to see strong trends in all of our businesses.
“Our top priority continues to be building an appropriate risk and control infrastructure for a company of our size and complexity and we continue to invest in additional resources and devote significant management attention to this work. At the same time, we are investing in our business to improve our competitive position for the future and our recent launch of our redesigned Wells Fargo Active CashSM Card, one of the industry’s best cash back cards, is an early example. This is the first of a redesigned card product suite to come in our card business, but we are also working across the company on products and capabilities to compete effectively in today’s dynamic environment.
“We know that supporting our customers and communities will continue to be an important part of our mission and while we are proud that we have supported those most in need through the pandemic there remains much more to do. Our progress during the second quarter included voluntarily extending our foreclosure moratorium on mortgage loans we own, issuing our first Sustainability Bond, and announcing the Banking Inclusion Initiative as part of our commitment to help unbanked individuals.”
