Net income at the wealth, brokerage and retirement division of Wells Fargo rose 4 per cent to $450 million in the third quarter of 2013, as total revenue inched up 1 per cent to $3.3 billion. Year-on-year, net income in this division shot up 33 per cent from $338 million, while total revenue was up 9 per cent.

The 9 per cent hike in revenue was driven by strong growth in asset-based fees and higher net interest income, partly offset by decreased brokerage transaction revenue, Wells Fargo said in its latest earnings release.

“Excluding higher gains on deferred compensation plan investments (offset in compensation expense), revenue was in line with prior quarter as increased net interest income was mostly offset by lower brokerage transaction revenue," it said in a statement.

Total provision for credit losses fell $57 million from the second quarter of 2013 to $(38) million. It’s also down year-on-year from $30 million at end-September 2012. Wells Fargo noted that the Q3 and Q2 2013 provision included a $38 million and $5 million reserve release, respectively.

Non-interest expense increased $77 million, or 3 per cent, from Q2 2013. Besides higher deferred compensation expense (offset in trading income), non-interest expense increased $17 million, or 1 per cent, due to higher non-personnel expenses, partially offset by a decrease in broker commissions, Wells Fargo said.

The firm also reported wealth management client assets of $209 billion for Q3 2013, up 5 per cent year-on-year.

Across the group, net income ended the third quarter at $5.6 billion, up from $4.9 billion a year earlier and up from $5.5 billion in Q2 2013.