Within the wealth segment, client assets slipped slightly in the quarter.

The wealth and investment management arm of US-listed Wells Fargo, which includes the Abbot Downing business that serves ultra-high net worth clientele, has booked a 22 per cent year-on-year rise in third-quarter revenues, standing at $5.141 billion.

The firm said this segment reported net income in Q3 2019 of $1.28 billion, surging from $732 million a year ago and $602 million in the previous quarter. 

Wealth management client assets stood at $230 billion by the end of September, slipping by 4 per cent from the prior year, primarily driven by net outflows, Wells Fargo said in a statement earlier this week. 

Across the bank as a whole, net income fell to $4.6 billion in Q3 from $6.0 billion a year earlier. 

The bank is about to get a new chief executive, Charlie Scharf, who takes up the post on October 21, replacing interim CEO Allen Parker.

Explaining the fall in net income, chief financial officer John Shrewsberry said: “Wells Fargo reported $4.6 billion of net income in the third quarter and diluted earnings per share of $0.92, which included the impact of a $1.6 billion, or $0.35 per share, discrete litigation accrual for previously disclosed retail sales practices matters, as well as a $1.1 billion, or $0.20 per share, gain from the sale of our institutional retirement and trust business.”

“Business fundamentals were strong as both loans and deposits grew from the second quarter and from a year ago. Our net charge-off rate remained near historic lows, and we had strong capital returns, including increasing our quarterly common stock dividend by 19 per cent and reducing our common shares outstanding by 9 per cent compared with a year ago, while maintaining a strong capital position,” Shrewsberry added.