A period of changes, a rebrand and recovery from the pandemic combined to enable Wells Fargo to bounce back into profit in the second quarter of 2021.

Wells Fargo’s wealth and investment management total client assets rose 20 per cent year-on-year to reach $2.1 trillion at the end of June, mainly down to higher market levels, the California-based group said.

The bank swung into net profit in the quarter ending June 30, at $6.04 billion, versus a loss of $3.846 billion, reflecting the turnaround from last year’s big provisions for credit losses to handle the pandemic. There was a cut of $1.26 billion for credit losses, against the provision of $9.534 billion in provisions for credit losses in the second quarter of 2020. 

Total revenues rose to $20.27 billion from $18.286 billion a year ago, Wells Fargo said.

Among further details on the wealth management side, total revenues stood at $3.536 billion in Q2 2021, up from $2.487 billion; net income was $485 million, up from $156 million.

Wells Fargo's business which serves ultra-high net worth families, formerly known as Abbot Downing, has been rebranded under the Wells Fargo private banking brand. 

In February this year Wells Fargo announced that it is selling its asset management arm – holding $603 billion of assets under management – to the private equity and investment firms, GTCR and Reverence Capital Partners, respectively, for $2.1 billion.