U.S. Bancorp Wealth Management & Securities Services Sees 17% YOY Gain

Net income for U.S. Bancorp’s Wealth Management and Securities Services division rose $4 million over last quarter and $8 million since last year to $56 million, a 7.7% and 16.7% gain respectively.
By Jake Safane(2147484770)
Net income for U.S. Bancorp’s Wealth Management and Securities Services division rose $4 million over last quarter and $8 million since last year to $56 million, a 7.7% and 16.7% gain respectively.

The Wealth Management and Securities Services division provides private banking, financial advisory services, investment management, retail brokerage services, insurance, trust, custody and fund servicing through five businesses: Wealth Management, Corporate Trust Services, U.S. Bancorp Asset Management, Institutional Trust & Custody and Fund Services. Wealth Management and Securities Service.

Total net revenue for the division increased by $33 million year over year, an 8.1% gain, due mainly to a 9.1% gain in total noninterest income from account growth, improved market conditions and business expansion. Total noninterest expenses also increased, though, by $15 million (4.6%), “primarily as a result of higher compensation and employee benefits expense, including the impact of business expansion,” says the bank.

Over last quarter, total noninterest income increased by 2.4% from higher trust and investment management fees, as business expanded and market conditions improved. And compared to last quarter, total noninterest expense was flat, as higher professional services costs were offset by lower net shared services expense, explains U.S. Bancorp.

As for the bank’s capital ratios, under the Basel III transitional standardized approach, the common equity tier 1 capital ratio was 9.6%, down slightly from 9.7% last quarter. The tier 1 capital ratio also dipped from 11.4% to 11.3%, but this is up from 11.1% in the prior year’s second quarter. Under the Basel III transitional advanced approach, the common equity tier 1 capital to risk-weighted assets ratio was 12.3%, and under the fully implemented advanced approach, this ratio measured 11.7%.

For the bank as a whole, net income rose 7% over last quarter and 0.7% over last year.

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