Wells Fargo (WFC) said Thursday that David Kowach is the new head of Wells Fargo Advisors.
The announcement came one month after the prior head of the advisor group, Mary Mack, was tapped to lead Wells Fargo’s retail bank group. Wells Fargo Advisors has about $1.5 trillion in client assets and some 15,000 financial advisors.
Kowach, who has been in the financial services industry for 25 years, now reports to David Carroll, head of Wells Fargo’s Wealth and Investment Management unit.
“Ever since he began his career as a financial advisor, David Kowach has been focused on what is best for clients,” Carroll said in a statement. “[He] is well known and highly respected for his industry knowledge, deep relationships and proven results. He has a demonstrated track record of creativity and a vision for the evolution of the advisory business that is so important to our future competitiveness.”
Starting in 2012, Kowach worked as head of WFA’s Private Client Group, which includes nearly 11,000 registered reps. Earlier, he led WFA’s Business Development Group and was responsible for recruitment, retention, growth strategies and national sales.
“I’ve always believed that Wells Fargo’s advisors and team members are the best in the industry when it comes to serving clients,” explained Kowach, in a statement. “I’m so proud and honored for the opportunity to work with them and our partners to take care of clients and prepare our business for the future.”
The executive began his career at Capital Analysts of Cincinnati and then Federated Securities of Pittsburgh, according to his Financial Industry Regulatroy Authority BrockerCheck records. He later working for Mentor Distributors, Mentor Services and Evergreen.
“I’ve always believed that Wells Fargo’s advisors and team members are the best in the industry when it comes to serving clients,” said Kowach, in a statement. “I’m so proud and honored for the opportunity to work with them and our partners to take care of clients and prepare our business for the future.”
In the second quarter, the Wealth and Investment Management unit had a slight decrease in total revenue, which was $3.92 billion vs. $3.98 billion a year ago. The bank says this decline was related to lower asset-based fees and brokerage transaction revenue. The unit’s net income was $584 million, down from $586 million in Q2’15.
Wells Fargo’s Wealth & Investment unit has four business segments: retail brokerage, wealth management, retirement and asset management.
Client assets in the retail brokerage business improved 2% to $1.5 trillion, while advisory assets grew 2% as well to $444 billion, “primarily driven by positive net flows,” according to the bank. “Strong loan growth, with average balances up 20% from [the] prior year largely due to continued growth in nonconforming mortgage loans and security-based lending.”
The wealth group’s assets were $224 billion as of June 1. Its average loan balances expanded 9% on higher mortgage and commercial loans, as well as security-based lending.