Wells Fargo’s FA Count Down in 4Q
After stemming advisor departures in the third quarter, Wells Fargo went back to shedding reps in the fourth quarter, WealthManagement.com writes.
The bank’s wealth management unit had 14,544 reps at the end of the fourth quarter, a 0.14% drop from the previous quarter and a 2% drop year-on-year, the web publication writes. The unit’s net income was $659 million, meanwhile, down 7% from the third quarter, according to WealthManagement.com.
But revenue increased $59 million from the previous quarter to $4.3 billion, which the firm attributed to higher revenue from asset-based and transaction fees, according to the web publication. What’s more, assets under management reached a new record of $1.9 trillion — an 11% increase over the year prior, WealthManagement.com writes. But the rise was in large part due to higher market valuations, according to the publication.
The company overall reported a net income of $6.2 billion, compared to $5.3 billion the year prior, according to the web publication.
Wells Fargo has been steadily losing advisors to rivals after a bogus account scandal at the company’s retail banking unit shook the firm in the fall of 2016, but its wealth management unit’s recruiting seemingly bounced back in the third quarter of 2017.
Wells Fargo Advisors was able to add 37 new advisors that quarter, although that was still 3.5% down from the year prior. But in the fourth quarter, the firm lost several veteran reps — despite sweetening payouts for its top producers for 2018.