Net income at the wealth, brokerage and retirement division of Wells Fargo dropped 4 per cent from $351 million at the end of December 2012 to end the first quarter of 2013 at $337 million. Year-on-year, however, net income in this division is up 14 per cent.

The wealth, brokerage and retirement division of Wells Fargo includes the Abbot Downing division, which caters to ultra high net worth individuals and families.

During the first quarter, total revenue rose by 3 per cent to $3.2 billion, while non-interest expense increased 5 per cent from Q4 2012. The latter result was primarily due to the seasonal impact on personnel expenses, higher deferred compensation expense (offset in trading income) and increased broker commissions, the San Francisco-headquartered firm said in a statement last Friday.

Year-over-year, total revenue rose at the unit by 4 per cent from $3.06 million to $3.2 million. However, excluding $36 million in lower gains on deferred compensation plan investments, revenue was actually up by 6 per cent. This was mainly due to strong growth in asset-based fees and higher brokerage transaction revenue, partially offset by lower net interest income and reduced securities gains in the brokerage business, the firm said in its latest earnings release.

Total provision for credit losses decreased by $29 million from the first quarter of 2012 to $14 million at end-March 2013. This includes a $6 million credit reserve release in Q1 2013.

Meanwhile, over the year non-interest expense rose by 4 per cent to $2.6 million (Q1 2012: $2.5 million). This was driven by higher personnel expenses - primarily broker commissions - and partially offset by lower deferred compensation expense. Besides the $33 million decrease in deferred compensation, non-interest expense increased 5 per cent.

In retail brokerage, the firm logged client assets of $1.3 trillion, up 7 per cent on the prior year; wealth management client assets were $208 billion, up 3 per cent.