Regions Banks wealth management businesses slipped in the fourth quarter, according to the banks holding companys financial results released Tuesday.
In the fourth quarter, the Birmingham, Ala.-based bank generated $48 million in investment management and trust fee income, down $2 million, or 4%, from the previous quarter. Revenue from investment services also fell, dropping 20% to $8 million from $10 million in the third quarter. One bright spot in the fourth quarter was insurance commissions and fees, which increased by $1 million, or 3.7%, to $28 million.
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In total, the banks wealth management businesses generated $84 million in fourth-quarter revenue, down 24.3% from $111 million in the third quarter. The strong third-quarter performance was due to the divestiture of a non-core portion of the wealth management business, which resulted in a pre-tax gain of $24 million, the companys CFO David J. Turner, Jr., said during the earnings call.
Regions Bank
In 2013, we made significant investments in our wealth management group by adding over 100 financial consultant positions. We expect these positions to be fully profitable in 2014, Turner told analysts on the call.
Overall, Regions Financial Corp. earned $219 million in the fourth quarter, down 23.1% from $285 million the previous quarter. For the full year, Regions earned $1.1 billion, up 10% year-over-year.