Net income at Wells Fargo’s wealth, brokerage and retirement unit shot up 40 per cent year-on-year to $491 million in the final quarter of 2013.

Net income at Wells Fargo’s wealth, brokerage and retirement unit shot up 40 per cent year-on-year to $491 million in the final quarter of 2013.

Revenue increased $344 million - or 11 per cent - from a year ago to $3.4 billion, which the New York-listed firm said was driven by strong growth in asset-based fees, higher net interest income and higher gains on deferred compensation plan investments (offset in compensation expense).

Fourth quarter earnings at the wealth, brokerage and retirement division were up 9 per cent from Q3 2013, while revenues of $3.4 billion increased $131 million, or 4 per cent. The latter result was primarily driven by higher asset-based fees, as well as increases in net interest income and brokerage transaction revenue, Wells Fargo said yesterday.

Meanwhile, the provision for credit losses rose $27 million from third quarter 2013 due to reduced reserve releases. The provision in Q3 and Q4 2013 included $11 million and $38 million of reserve releases respectively, the firm said.

Wealth management client assets of $218 billion were up 7 per cent from prior year, while average loan balances rose 9 per cent from a year ago.