Regions Bank's wealth management business grew modestly in the second quarter, according to the bank's holding company's financial results released Tuesday.
In the second quarter, the Birmingham, Ala.-based bank generated $90 million in wealth management income, up 3.4% year-over-year and up 1.1% from the previous quarter.
Retail brokerage was the shining star among the bank's wealth management businesses in terms of growth. Revenue from brokerage services jumped 22.2% year-over-year, bringing in $11 million in the most recent quarter. Fees and commissions from insurance contributed another $32 million in second-quarter revenue, up a significant 10.3% year-over-year.
Growth in the investment management and trust business, however, stalled, falling 4.1% to $47 million from $49 million in the same quarter last year.
During the earnings call on Tuesday, Grayson Hall, the company's chairman, president and CEO, noted that Regions had recently realigned its business units and geographic leadership to create "a more streamlined corporate structure focused on execution." A general bank, consisting of businesses that serve retail, wealth management and business, was created, along with a corporate bank serving the middle market and large corporate clients, Hall said.
Regions Bank reorganized its wealth management operations in September 2012 following the sale of its Morgan Keegan business to Raymond James. In 2013, it formed a new brokerage unit focused on the needs of mass-affluent customers. The unit aims to have 160 to 170 financial advisors by the end of 2014, Jim Nonnengard, head of Regions Investment Services, the bank's brokerage unit, told Bank Investment Consultant last year.
Overall, Regions Financial Corp., the parent of Regions Bank, earned $292 million, or $0.21 per diluted common share, in the second quarter, up from $260 million, or $0.18 per diluted common share, a year ago.
"Overall, we're pleased with our results, which reflect our steady progress as we continue to effectively execute on our business plans," Hall said.
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