Financial Results

First Republic Wealth Management Assets Up By Over Half Year-On-Year

Eliane Chavagnon Reporter 17 January 2013

First Republic Wealth Management Assets Up By Over Half Year-On-Year

Total wealth management assets at First Republic Bank were $31.7 billion at December 31, 2012, up 28 per cent for the quarter and 55 per cent since the previous year-end.  

The hike in wealth management assets includes $5.9 billion of assets under management from the Luminous Capital purchase. “The bank will begin earning fees on these assets beginning in the first quarter of 2013,” First Republic said in its latest earnings release.

Broken down, wealth management assets include investment management assets of $17 billion, brokerage assets and money market mutual funds of $9.7 billion, and trust and custody assets of $5 billion. Meanwhile, wealth management fees earned - including investment advisory, trust and brokerage fees - for the fourth quarter of 2012 were up 36 per cent compared to the previous year’s fourth quarter, and were up 24 per cent for the full year.

Across the group, net income hit a record $402.5 million, up 14 per cent year-on-year, the bank said. For the quarter, net income was $110.1 million, up 21 per cent from a year earlier.

Total revenues came to $357.9 million for the fourth quarter of 2012, compared to $342.7 million for the prior quarter and $314.9 million, or 14 per cent, on the prior year. Total revenues for 2012 were $1.3 billion, up 13 per cent from 2011.

The bank’s Tier 1 leverage ratio increased to 9.32 per cent, up from 8.81 per cent a year ago but slightly down from 9.33 per cent in the third quarter of 2012.  

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