U.S. Bank's wealth management businesses delivered another vigorous performance, according to the bank's financial results released on Wednesday.
The Minneapolis-based bank generated $600 million in second-quarter revenue from wealth management and securities services, up a notable 14.7% year-over-year. Revenue was also up from the previous quarter, rising 4%.
Profits from the businesses were even more robust, climbing 30.5% to $124 million from $95 million in the same quarter a year ago.
For the first six months, wealth management and securities services earned $231 million on $1.2 billion in revenue. Profits for the first half of the year were up 35.9%, while revenue was up 15.5%.
The increase in second-quarter revenue was due in part to an uptick in trust and investment management fees, which increased 6.1% year-over-year due to favorable market conditions and account growth, the bank explained in the earnings release.
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The number of employees involved in compliance and regulatory work at U.S. Bank doubled over the past three years.
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The bank sees the greatest growth coming from its own customer base, particularly the emerging affluent.
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The new hire was previously with Deutsche Bank where he served as head of Issuer Services.
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U.S. 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 and retail brokerage to financial advisory, insurance, trust, custody and fund servicing, the bank said.
Of the five businesses, U.S. Bancorp Wealth Management was the second leading revenue generator, bringing in $197 million, or 32.8% of the total $600 million posted in the second quarter. Revenue from wealth management was up 8.2% year-over-year and up 2.1% from the prior quarter.
Overall, U.S. Bank's parent company earned $1.50 billion, or 85 cents per diluted common share, in the second quarter, compared with $1.52 billion, or 83 cents per diluted common share, in the same quarter a year ago.
"I'm proud of our solid second-quarter performance and our ability to deliver industry-leading results," U.S. Bank CEO Andy Cecere said in the release.
