It looks like U.S. Bank might be in the market for a wealth management practice.
The bank has done a "great job" of growing the investment services business internally, but that wouldn't stop it from considering buying a wealth manager, the bank's president and CEO, Andy Cecere, said during its
"If there are opportunities that present themselves, we will take a look," he said.
The bank's CFO, Terry Dolan, clarified that the bank was interested in what it referred to as a "real wealth manager" and not "traditional asset managers," which merely manage client assets and then collect commissions on trading activity.
The bank would look at a wealth manager because "culturally it would be a better fit for the bank," Dolan said.
Wealth managers are more relationship-oriented and holistic in their approach to managing financial assets than asset managers, the bank's director of investor relations explained.
The acquisition of a wealth management shop wouldn't be surprising. A number of banks have purchased RIAs and advisory practices this year in a bid to grow their wealth management businesses. Last month, Fifth Third Bank bought a $531 million retirement advisory firm in Cincinnati, while Meridian Bank of Malvern, Pennsylvania, bought a local RIA with roughly $550 million in assets under management.
U.S. Bank's wealth management business posted solid revenue growth
