U.S. Bank's wealth management businesses delivered a strong fourth-quarter and year-end performance, according to the latest financial results released by the bank on Friday.
The Minneapolis-based bank generated $482 million in fourth-quarter revenue from wealth management and securities services, up 6.6% from the same period a year ago and up 3.9% from the previous quarter.
Profits from the business line were also robust, swelling 10.9% to $71 million from $64 million a year ago.
For the full year, wealth management and securities services earned $257 million on $1.9 billion in revenue. Earnings for the year were up 2.4%, while revenue was up 4.1%.
The increase in revenue was due to the impact of account growth and improved market conditions and lower fee waivers, according to the earnings release.
The bank's wealth management and securities services are delivered through five distinct businesses, including U.S. Bancorp Wealth Management. The services range from private banking, investment management and retail brokerage to financial advisory, insurance, trust, custody and fund servicing, the company explained in the earnings release.
Of the five businesses, U.S. Bancorp Wealth Management was the top revenue generator, bringing in $181 million in the fourth quarter, or 37.5% of the total $482 million posted. Revenue from wealth management was flat year-over-year but up 1.7% from $178 million in the previous quarter.
Overall, U.S. Bank earned $1.48 billion, or 80 cents per share, in the fourth quarter, compared with $1.49 billion, or 79 cents per share, in the same quarter a year ago.
"U.S. Bancorp delivered a remarkable performance in 2015," Richard Davis, chairman, president and CEO said in a statement." As the operating environment continues to improve, we are optimistic about the momentum building in our core businesses, particularly within our wealth management and securities services and payment services businesses."
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