Wells Fargo Profits Hurt by $1.6B Legal Charge: Q3 Earnings

The wealth unit had net income of $1.3 billion, up 75% from a year ago thanks to a $1.1 billion gain on the sale of its Institutional Retirement & Trust business to Principal Financial Group.

Total client assets stand at $1.9 trillion, down 1% from Q3'18.

In a statement, the bank said it "hired more advisors" than it lost to rivals. It also insists that its declining headcount stems mainly from "advisors retiring or otherwise leaving the industry."

"We anticipate continued retirements, as we've seen enthusiastic response to Summit, our enhanced succession program," it added, noting that its average level of yearly fees and commissions for veteran hires is about 33% higher in 2019 than last year. "Further, these new hires do about 58% more production than the average advisor leaving for competitors."

The advisors leaving Wells Fargo in the third quarter included a group led by Chuck Cooper, CFP, a former branch manager in Lee's Summit, Missouri. Cooper and his partner John Garlow — along with operations director Kathy Postoak — work with $300 million in client assets and now do business as StrongBox Wealth, an affiliate of Dynasty Financial.