Wells Fargo Advisory Revenue Sinks Along With Client Assets

Tuesday, October 18, 2011 07:20
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Wells Fargo Advisory Revenue Sinks Along With Client Assets

"Economic conditions" kept many key benchmarks under pressure at Wells Fargo's advisory business last quarter.

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The company, one of the smaller surviving wirehouse firms, says advisory revenue sank 6% on a quarter-to-quarter basis to $2.9 billion.

 

With 15,188 advisors on its roster -- about 50 fewer than last quarter -- that translates into production of about $190,000 per Wells Fargo rep.

 

Last quarter, each rep was bringing in $202,000 apiece.

 

Wealth management is a relatively small component of Wells Fargo's business, accounting for barely 14% of the bank's $19.6 billion in revenue last quarter.

 

Still, this miss hurts the parent company's prestige and profitability. The advisory unit is still making money, but profits fell 12% over the quarter.

 

Naturally, the numbers are still ahead of where they were a year ago, but this kind of short-term trend can't be encouraging.

 

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