Wells Fargo wealth management earnings rise

NEW YORK (Reuters) - Wells Fargo & Co (WFC.N) said fourth-quarter revenue and profit from its wealth, brokerage and retirement businesses rose from a year ago because of an increase in fees and commissions as markets rebounded.

Revenue across the three wealth businesses, a small but growing part of the fourth-largest U.S. commercial bank, rose 15 percent to $3 billion. Two straight years of stock market gains helped boost assets under management, leading to more fees, and prompted clients to make more trades.

The firm added 100 financial advisers over the quarter and now has 15,188 advisers, according to a Wells Fargo spokeswoman.

Wells does not break down the financial performance of individual businesses such as Wells Fargo Advisors, the nation's third-largest brokerage.

The wealth division posted net income of $197 million, compared with a $16 million loss last year when Wells settled complaints over its sales of auction-rate securities before debt markets seized up.

In November 2009, Wells agreed to buy back $1.3 billion of auction-rate securities from clients after the market for the investments froze.

Client assets in the retail brokerage business, which includes Wells Fargo Advisors, rose 6 percent from a year earlier to $1.2 trillion.

Expenses also increased 2 percent from a year ago as broker pay rose along with increased commissions and fees.

(Reporting by Helen Kearney. Editing by Dave Zimmerman and Robert MacMillan)