Regions Bank's wealth management businesses delivered a solid fourth-quarter performance, according to the bank's holding company's earnings released Tuesday.
The Birmingham, Ala.-based bank generated $91 million in fourth-quarter revenue from its brokerage, trust and insurance services operations, up $7 million, or 8.3%, from the same quarter a year ago. Revenue from wealth management businesses, however, was up only 1.1%, or $1 million, from the previous quarter.
"Wealth management income increased as the company continues to expand and deepen relationships with new and existing customers," David Turner, the company's CFO, said during the earnings call.
Of the bank's three primary wealth management lines of business, trust services was the biggest revenue generator, hauling in $50 million, a 4.2% year-over-year increase and a 6.4% jump from the prior quarter. Insurance services came in second, bringing in $31 million, up 10.7%, or $3 million, from $28 million in the same quarter a year ago, but flat from the third quarter. Retail brokerage, the smallest contributor to wealth management income, posted the largest over-over-year gains, swelling 25% to $10 million from $8 million the year before. Revenue from retail brokerage, however, was down $2 million, or 16.7%, from the third quarter.
Overall, Regions Financial Corp., the parent of Regions Bank, earned $195 million, or $0.14 per diluted share, in the fourth quarter, compared with $219 million, or $0.16 per diluted share, in the fourth quarter of 2013. For the full year, the company earned $1.1 billion, or $0.80 per diluted share, up 4% from $0.77 per diluted share in 2013.