U.S. Bank's wealth management businesses posted solid revenue and profit gains in the second quarter, according to the latest financial results released by the bank's parent on Wednesday.
The Minneapolis-based bank generated $463 million in revenue from wealth management and securities services, up 4.5% year-over-year and up 4.3% from the previous quarter.
Profits from the business line were especially robust. Wealth management and securities services earned $68 million, a 9.7% increase from $62 million in same quarter of 2014 and a notable 23.6% jump from $55 million in the previous quarter.
For the first half of 2015, wealth management and securities services earned $123 million on $907 million 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 serving, the company explained in the earnings release.
Of the five businesses, U.S. Bancorp Wealth Management was the top revenue generator, bringing in $183 million, or 40% of the total $463 million posted for the quarter. Wealth management's second-quarter revenue was up 1.6% year-over-year and up 2.23% from the previous quarter.
Overall, U.S. Bancorp, the parent of U.S. Bank, earned $1.48 billion, or 80 cents per share, in the second quarter, compared with $1.49 billion, or 78 cents per share, a year ago.
"U.S. Bancorp once again demonstrated the effectiveness of its business model as we delivered solid second quarter financial results in a challenging operating environment for financial institutions," Richard K. Davis, U.S. Bancorp's chairman, president and CEO, said in a statement. "As we pursue our vision for the future, we must continue to balance the investments we make in our highest return initiatives with prudent financial discipline that's the nature of navigating through this low interest rate environment."