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October 12, 2018 at 03:22 PM
Wells Fargo beat analysts’ expectations with a slight improvement in revenue to $21.9 billion from $21.8 billion a year ago tied to stronger consumer lending, rising interest rates and other factors. However, net income of $6.0 billion, or $1.13 per share, did not top estimates; these results, though, were up from $4.5 billion, or $0.83 per share, in the third quarter of 2017.
“In the third quarter, we continued to make progress in our efforts to build a better Wells Fargo … We are strengthening how we manage risk and have made enhancements to our risk management framework,” according to CEO Tim Sloan.
In wealth management — which accounts for 12% of the bank’s total net income — profits grew 2% year over year to $732 billion from $719 billion. That’s a big change from last quarter, when net income sank 37% from the prior year and the unit set $114 million aside for refunds to wealth management clients who were charged “incorrect fees.”
Headcount Woes
The number of financial advisors in the retail brokerage business, though, fell again. It stands at 14,074 — down 490 from a year ago and 152 from the second quarter.
Since Wells Fargo’s fake-accounts scandal began capturing headlines in September 2016, the number of advisors has declined by 1,012 — a drop of 7% from 15,086 two years ago. The trend seems to be continuing into the fourth quarter.
