SunTrust Bank's wealth management businesses took a beating in the second quarter, according to the bank's latest financial results released on Friday.
Second-quarter revenue from trust and investment management services plunged 11% to $75 million from $84 million in the same quarter a year ago. Revenue was flat from the prior quarter.
The 11% year-over-year was primarily due to a decline in assets under management, the bank's parent explained in the earnings release. At the end of the second quarter, the trust and investment management business had $40.5 billion in assets under management, down 5% year-over-year.
For the first six months of 2016, trust and investment management generated $150 million in revenue, a significant 11% decline from the $168 million posted in the same period last year.
The performance of the retail brokerage unit was also disappointing with second-quarter revenue sliding 10% year-over-year to $72 million. Revenue, however, was up 4% from the previous quarter.
For the first half of 2016, the retail brokerage business posted $141 million in revenue, lagging last year's revenue number by 7%.
On a positive note, the retail brokerage unit was able to increase its assets under management 11% to $11.8 billion from $10.5 billion a year ago.
Overall, SunTrust earned $475 million, or 94 cents per common diluted share, in the second quarter, compared with $467 million, or 89 cents per common diluted share, in the same quarter the prior year.
"Our performance this quarter is further indication of our ability to deliver on our commitments," William Rogers, Jr., SunTrust's chairman and CEO, said in a statement. "The consistent execution of our core strategies, combined with the diversity of our business model, resulted in solid revenue growth, strong improvements in efficiency and significantly higher capital return to shareholders."