U.S. Bank's wealth management businesses squeaked in a respectable finish to their third-quarter performance, according to financial results released by the bank on Thursday.
The Minneapolis-based bank generated $464 million in revenue from wealth management and securities services, up 3.3% year-over-year and up $1 million, or .2%, from the previous quarter.
Profits from the business line, however, were less than stellar. Wealth management and securities services earned $64 million, unchanged from the same period a year ago, and down 7.2% from $69 million in the prior quarter.
For the first nine months of 2015, wealth management and securities services earned $187 million on $1.4 billion in revenue, 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 $178 million, or 38% of the total $464 million posted for the quarter. Wealth management's third-quarter revenue, however, fell 2.2% year-over-year. It was also off 2.7% from the prior quarter.
Overall, U.S. Bancorp, the parent of U.S. Bank, earned $1.49 billion, or 81 cents per diluted common share, in the second quarter, compared with $1.47 billion, or 78 cents per diluted common share, a year ago.
"I'm very proud our third-quarter results," Richard K. Davis, U.S. Bancorp's chairman, president and CEO, said during the earnings call. "We reported record EPS, maintained our industry-leading performance measures, and reported a 19% return on tangible common equity in the quarter. We're operating from a position of strength as we grow revenue, as we manage expectations, as we seek to exceed customer expectations and as we create value for our shareholders in a demanding marketplace."
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