Wells Fargo reports drop in advisers, assets for Q2

Wells Fargo reports drop in advisers, assets for Q2
Wells Fargo Advisors says it is focused on hiring bigger producing teams
JUL 14, 2020

Wells Fargo & Co.'s wealth and investment management group on Tuesday morning reported a year-over-year 4% decline in client assets to $1.8 trillion; meanwhile, Wells Fargo Advisors also saw a 4% decline in the number of financial advisers, totaling 13,298 at the end of June compared to 13,799 a year earlier.

The decline in assets was primarily due to net outflows in the firm's correspondent clearing business, according to a supplement report to the bank's second-quarter earnings report. Wells Fargo clears trades for dozens of other broker-dealers, known as "correspondents" in the industry.

A spokesperson for Wells Fargo Advisors said the firm was focused on its plan to focus on teams and recruit advisers that produce more each year in fees and commissions. The firm has been reporting a steady loss of advisers since it reported a banking scandal in 2016.

"Our strategy is to focus on a highly productive team of advisers, and to manage out under performers," Wells Fargo spokesperson Desari Mueller wrote in an email. "We anticipate that the number of advisers will continue to decline as we continue this strategy over the next couple years. The overall headcount number is not a strong predictor of revenue growth.”

Meanwhile, Wells Fargo & Co., the bank parent of Wells Fargo Advisors, reported a net loss of $2.4 billion for the second quarter, and the bank's view of the length and severity of the current economic downturn in the wake of COVID-19 has deteriorated considerably from previous assumptions, the company said in a statement.

Latest News

The power of cultivating personal connections
The power of cultivating personal connections

Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.

A variety of succession options
A variety of succession options

Whichever path you go down, act now while you're still in control.

'I’ll never recommend bitcoin,' advisor insists
'I’ll never recommend bitcoin,' advisor insists

Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.

LPL raises target for advisors’ bonuses for first time in a decade
LPL raises target for advisors’ bonuses for first time in a decade

“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.

What do older Americans have to say about long-term care?
What do older Americans have to say about long-term care?

Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound