Net income at Wells Fargo's wealth, brokerage and retirement division jumped by 41 per cent from the first quarter of 2013 to reach $475 million at end-March 2014.

Net income at Wells Fargo's wealth, brokerage and retirement division jumped by 41 per cent from the first quarter of 2013 to reach $475 million at end-March 2014.

However, net income was down by 3 per cent from the last quarter of 2013, although revenue rose 8 per cent during the year, driven by growth in asset-based fees and higher net interest income.

Revenue of $3.5 billion inched up 1 per cent from the fourth quarter of 2013, as higher asset-based fees were largely offset by lower gains on deferred compensation plan investments (offset in compensation expense).

Wells Fargo said non-interest expense was up 2 per cent over the prior quarter and included seasonally higher personnel costs and lower deferred compensation plan expense (offset in trading income). Year-on-year, non-interest expense rose 3 per cent, which the firm attributed primarily to higher broker commissions.

The provision for credit losses decreased $22 million from a year ago.

On the retail brokerage side, client assets of $1.4 trillion were up 8 per cent year-on-year, while managed account assets increased $63 billion, or 19 per cent, from a year ago.

Wealth management client assets, meanwhile, rose 6 per cent during the year to $217 billion and IRA assets increased 9 per cent to $344 billion.

For the group as a whole, Wells Fargo & Co reported record net income of $5.9 billion, or $1.05 per diluted common share, for first quarter 2014. This is up from $5.2 billion, or $0.92 per share, for first quarter 2013, and up from $5.6 billion, or $1.00 per share, for fourth quarter 2013.