U.S. Bank's wealth management businesses delivered another formidable quarter, according to the bank's financial results released on Wednesday.
The Minneapolis-based bank generated $109 million in first-quarter profit from wealth management and securities services, up a remarkable 39.7% year-over-year. Revenue from the businesses was also up, jumping 16.3% to $577 million from $496 million a year ago.
The increase in revenue was partly due to an uptick in trust and investment management fees, reflecting improved market conditions, account growth and lower money market fee waivers, the bank explained in the earnings release.
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 $193 million, or 33.4% of the total $577 million posted in the first quarter. Revenue from wealth management was up 6% year-over-year and up 2% from the prior quarter.
Overall, U.S. Bank's parent company earned $1.5 billion, or 82 cents per share, in the first quarter, compared with $1.4 billion, or 76 cents per share, in the same quarter a year ago.
"U.S. Bancorp once again delivered industry-leading returns and profitability in the first quarter of 2017 as we leveraged our diverse business platform and our investments in innovation to deliver the entire bank to our customers in the ways they want to interact with us," U.S. Bank CEO Andy Cecere said in the release.
