Financial Results

First Republic Wealth Management Assets Up 7 Per Cent

Eliane Chavagnon Reporter 18 October 2012

First Republic Wealth Management Assets Up 7 Per Cent

Wealth management assets at New York-listed First Republic Bank stood at $24.8 billion at September 30, up 7 per cent for the quarter and 22 per cent since year-end.

Broken down, wealth management assets include investment management assets of $10.8 billion, brokerage assets and money market mutual funds of $9.2 billion, and trust and custody assets of $4.9 billion. Meanwhile, fees earned - including investment advisory, trust and brokerage fees - were up 18 per cent in Q3 compared to last year’s third quarter. Year-to-date for the end of the quarter, they were up 20 per cent compared to the prior year.

For the group, net income for the quarter was $102.7 million, compared to $87.8 million for the third quarter of 2011, up 17 per cent. Non-interest expense at the end of the quarter stood at $178.4 million, compared to $171.6 million in Q2 and $144.8 million for the third quarter a year ago - a 4 per cent increase over the prior quarter and a 23 per cent increase year-over-year.

Total revenues were $342.7 million, compared to $327.2 million for Q2 and $299.2 million for the third quarter of 2011 - a 15 per cent increase from a year ago.

Investment advisory fees were $15.4 million, just up from the $14.7 recorded in Q2 and up from $12.7 million this time last year. Brokerage and investment fees were $2.3 million, down from $2.7 million in the last quarter and $2.8 million a year ago. Trust fees stood at $2.4 million, up from $1.6 million this time last year and $2.2 million in Q2.

The bank's Tier 1 leverage ratio increased to 9.33 per cent, up from 8.95 per cent a year ago but slightly down from 9.55 per cent in the previous quarter.

"First Republic continues to deliver strong results across the franchise," said president and chief operating officer Katherine August-deWilde. "We’re building on the accelerating economic momentum in our coastal, urban markets."

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