U.S. Bank's wealth management businesses posted a solid first quarter, according to the bank's holding company's financial results released Wednesday.
The Minneapolis-based bank generated $448 million in revenue from wealth management and securities services, up 6.9% from $419 million in the same quarter a year ago. The revenue, however, was off 1.1% from the previous quarter.
Profits from wealth management and securities services were also strong. These services earned $59 million in the first quarter, up 13.5% year-over-year but down 9.2% from the fourth quarter of 2014.
The bank's wealth management and securities services are delivered through five distinct businesses, including U.S. Bancorp Wealth Management, the company explained in the earnings release. The services range from private banking, investment management and retail brokerage to financial advisory, insurance, trust, custody and fund servicing, it said.
Of the five businesses, U.S. Bancorp Wealth Management was the revenue workhorse, hauling in $178 million, or 40% of the total $448 million generated in the quarter. U.S. Bancorp's first-quarter revenue was up 1.7% year-over-year but down 1.6% from the previous quarter.
Overall, U.S. Bancorp, the parent of U.S. Bank, earned $1.43 billion, or 76 cents per diluted common share, in the first quarter, compared with $1.39 billion, or 73 cents per diluted common share, a year ago.
"The first quarter results reflect normal seasonal effects, such as the expected post-holiday spending. We believe the diversification of our business mix has served us well through the prolonged low interest rate environment and slow economic recovery, and we are well positioned for stronger growth when the economy gains momentum and interest rates rise," Richard Davis, chairman, president and CEO of U.S. Bancorp, said in a statement.