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Q4 Profits Up 15% at Wells Fargo’s Wealth Unit

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Wells Fargo (WFC) said Friday that its fourth-quarter profit was nearly unchanged from a year ago at $5.7 billion, or $1.03 per share, and revenue grew less than 1% to $21.6 billion. (Analysts estimated the bank would earn $1.02 per share in the quarter.)

The wealth and investment-management unit posted a profit of $595 million, a 15% gain, on a roughly 1% jump in revenue, which totaled $3.95 billion in Q4’15.

The average level of loans for the unit was $63 billion, up from $55 billion a year ago. The bank says advisor clients had an average of 10.55 cross-sold products in their accounts in the most-recent period, up from 10.49 a year ago.

Client assets stood at $1.4 trillion, down about 2% year over year, with $420 billion in managed accounts and $350 billion in IRAs.

Wells Fargo’ revenue tied to mortgages and related services improved nearly 10% to $1.66 billion on $47 billion in originations.

According to Bloomberg, Wells Fargo’s assets totaled $1.79 trillion at the end of 2015, which topped Citigroup’s $1.73 trillion.

Other EPS News

Citigroup (C) said Friday that it had net income of $3.3 billion, or $1.02 per share, compared with profits of $344 million, or $0.06 per share, a year before. Analysts, however, say the revenue gains were too dependent on one-time items.

On Thursday, JPMorgan Chase (JPM), the largest U.S. bank, said fourth-quarter net income climbed 10% to $5.43 billion, as expenses tied to litigation and employee compensation decreased.

Bank of America (BAC), Morgan Stanley (MS) and Goldman Sachs (GS) report their Q4 earnings next week.

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