U.S. Bancorps wealth management business turned in a mixed third-quarter financial performance.
In the third-quarter of 2013, wealth management and securities services generated $305 million in revenue, down from $310 million, or 1.6%, from the previous quarter, the Minneapolis bank holding company announced Wednesday. Third-quarter revenue, however, was up $23 million, or 8.2%, year-over-year.
The increase in revenue from last year was primarily due to the impact of improved market conditions, business expansion and higher investment products fees, the company noted in its press release.
Trust and investment management fees generated $280 million in revenue, an increase of $15 million, or 5.7%, from the same quarter in 2012. Investment products fees were also up from last year, bringing in $46 million, up $8 million, or 21.1%, from $38 million. The increase in revenue from investment products was due to higher sales volumes and fees, according the companys release.
The banks wealth management and securities services business line, which includes private banking, financial advisory services, investment management, retail brokerage services, insurance, trust, custody and fund servicing, however, posted a considerable drop in its contribution to the companys bottom line, contributing only $34 million, down from $46 million in the second quarter and $43 million last year.
The decline in the business lines contribution from last year was due to higher total noninterest expense, the bank said.
Overall, U.S. Bancorp earned $1.47 billion, down less than half a percentage point from the same quarter last year.