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First Republic Wealth Management Assets Up 60 Per Cent Year-On-Year

Eliane Chavagnon

16 April 2013

Total wealth management assets at First Republic Bank were $35.3 billion at March 31, up 11 per cent for the quarter and up 60 per cent compared to a year ago.

Wealth management fees earned - including investment advisory, trust and brokerage fees - for the first quarter of 2013 came to $29.6 million. They were up 37 per cent compared to the prior quarter and 71 per cent compared to last year’s first quarter.

First Republic said increased fees reflect growth in assets under management, along with fees following the December 2012 Luminous Capital Holdings asset purchase.

Across the group, net income was $122.3 million, compared to $91.8 million for last year’s first quarter. Total revenues were $370.3 million for Q1 2013, compared to $357.9 million for the prior quarter and $313.9 million for last year’s first quarter, an 18 per cent increase from a year ago.

Excluding the impact of purchase accounting, revenues were $336 million for Q1 2013, compared to $316.9 million for the prior quarter and $267.6 million for the first quarter of 2012, up 26 per cent on the prior year.

“During the quarter, we saw continued economic strength in our markets as clients shifted back into real estate and equities,” said Katherine August-deWilde, president and chief operating officer.

“This elevated activity led to strong loan originations and robust growth of wealth management assets. We took advantage of continued strong secondary market demand for high-quality home loans and sold a record level of longer-term, fixed-rate mortgages at very profitable levels,” she said.