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Wealth Management Assets Rise At First Republic In Q3

Eliane Chavagnon

15 October 2013

Total wealth management assets at ended the third quarter of 2013 at $38.2 billion, up 5.2 per cent from the second quarter and up 56.3 per cent from $24.5 billion a year ago.

The New York-listed firm today attributed such year-end growth in assets under management primarily to net new assets obtained from both new and existing clients.

Wealth management assets include investment management assets of $20.1 billion; brokerage assets and money market mutual funds of $12.8 billion; and trust and custody assets of $5.3 billion – up year-on-year from $10.8 billion; $9.2 billion and $4.5 billion respectively.

Wealth management fees earned in this year’s third quarter totaled $33.8 million, up 2.2 per cent compared to the prior quarter and 68.4 per cent compared to Q3 2012. The increased fees reflect growth in AuM and fees related to assets of Luminous Capital Holdings, which the firm acquired in December 2012.

The group’s hike in non-interest income compared to the third quarter last year was “primarily due to increases in wealth management fees and loan servicing fees,” First Republic said in its latest earnings release.