U.S. Bank's wealth management businesses delivered an exceptional fourth-quarter performance, according to the bank's holding company's financial results released Wednesday.
The Minneapolis-based bank generated $457 million in fourth-quarter revenue from wealth management and securities services, up 9.6% year-over-year and up 2% from the previous quarter. For the full year, wealth management and securities services generated $1.8 billion, up 9.7% from $1.6 billion in 2013.
In the earnings release, the bank attributed the 9.6% year-over-year increase to "account growth, improved market conditions and business expansion."
Wealth management and securities services provides private banking, financial advisory services, investment management, retail brokerage services, insurance, trust, custody and fund servicing through five businesses, including U.S. Bancorp Wealth Management, the company explained in the earnings release.
Of the five businesses, U.S. Bancorp Wealth Management was the revenue workhorse, hauling in $181 million, or 40% or the total $457 million generated in the quarter. U.S. Bancorp Wealth Management's fourth-quarter revenue was up 3.4% from $175 million in the same quarter of 2013.
The profitability of U.S. Bancorp Wealth Management and the other four related businesses added to their strong top-line performance. Fourth-quarter profits for the businesses surged 53.5% to $66 million from $43 million in the same period the year before. Profits were also up from the previous quarter, jumping 8.2%.
For the full year, wealth management and securities services earned $237 million, an impressive 42.8% increase from $166 million in 2013.
Overall, U.S. Bancorp, the parent of U.S. Bank, earned $1.49 billion, or 79 cents per share, in the fourth quarter, compared with $1.46 billion, or 76 cents per share, in the fourth quarter of 2013. For the full year, the company earned a record $5.9 billion, or $3.08 per share, up 2.7% from $3.00 per share in 2013.
"I am very proud of our 2014 results. We reported record net income, maintained our industry-leading performance measures and returned 72% of our earnings to shareholders," Richard Davis, U.S. Bancorp's chairman, president and CEO, said during the earnings call.