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Wells Fargo Continues to Lose Advisors 2021Wells Fargo Continues to Lose Advisors 2021

While the brokerage's headcount keeps dropping, those that stay at the firm are becoming more productive and raking in additional client assets.

Diana Britton, Managing Editor

July 14, 2021

1 Min Read
Wells Fargo bank
Justin Sullivan/Getty Images News/Getty Images

Wells Fargo’s financial advisor ranks continue to shrink. The brokerage ended the second quarter with a total of 12,819 financial advisors, down 10% from a year ago and 3% from the first quarter, according to the company’s second quarter results.

Some of the attrition may be due to the fact that earlier this year, the firm announced plans to stop catering to clients outside the U.S. in an effort to “simplify the business,” said Jim Hays, head of Wells Fargo Advisors and the wealth and investment management client relationship group. Other firms, such as RIAs Snowden Lane and Sanctuary Wealth, have picked up several Wells Fargo teams serving international clients.

Wells Fargo’s wealth and investment management division, which includes The Private Bank, Abbot Downing, the firm’s employee, bank and independent brokerage models and clearing business, reported total revenue during the quarter of about $3.5 billion, up 10% from a year ago, driven primarily by higher asset-based fees on higher market valuations. Net income for the segment was $465 million, up from $156 million in the year-ago quarter.  

Total client assets increased 20% year-over-year to $2.1 trillion, driven by higher market valuations. Annual advisor productivity also improved during the quarter, rising to about $1.1 million, up 21% from a year ago and 2% from the first quarter.

Related:Wells Fargo Advisors to Exit All International Business

Wells Fargo reported total revenue of $20.27 billion for the quarter, up 10.9% year-over-year, beating analysts’ expectations by $2.58 billion, according to SeekingAlpha.com. Diluted earnings per share was $1.38, compared to a loss of $1.01 per share a year ago, beating expectations by 40 cents a share.  

 

 

About the Author

Diana Britton

Managing Editor, WealthManagement.com

Diana Britton is the Managing Editor of WealthManagement.com, covering covering independent broker/dealers and RIAs from all angles. She's also the host of The Healthy Advisor, a podcast focused on advisor health and wellbeing. A native of Los Angeles, she now lives in Rocklin, Calif.