Wells Fargo reported improved third-quarter results for its wealth and investment management division but acknowledged that profitability remains below competitors, according to Financial Planning.

Chief Financial Officer Michael Santomassimo told analysts that Wells Fargo intends to strengthen profit margins by increasing cross-selling opportunities and expanding into alternative investments. He noted that advisors are being encouraged to offer loans and other banking products to existing clients, aligning with a broader strategy across major banks to deepen client relationships. Additionally, Santomassimo pointed to the firm's focus on private equity, private credit, and private real estate products, which can enhance returns for both clients and the bank through higher fees.

Financial Planning further reports that total client assets climbed 8 percent year over year to $2.47 trillion, fueled by higher market valuations. Of that amount, $1.1 trillion was held in advisory accounts, up 11 percent, while $1.37 trillion was in brokerage accounts, up 5 percent. Advisory assets remain particularly valuable because they produce consistent fee revenue rather than relying on transactional activity.

According to Santomassimo, advisor recruiting, net asset flows, loan and deposit balances, and total client assets all showed solid momentum heading into the final quarter. Although the firm no longer discloses advisor headcount quarterly, the last reported figure in early 2023 stood at approximately 12,000 advisors.

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