Wells Fargo & Co.'s wealth, brokerage and retirement unit is preparing to bulk up.
The unit has set goals of contributing 20% to 25% of the company's total revenue within three years and of expanding client assets by 20%, to $1.5 trillion, said David Carroll, its head, at a conference Friday. In the first quarter, the wealth, brokerage and retirement division supplied about 14% of the company's revenue, typical for a bank-brokerage conglomerate.
"We want revenue to outpace expense growth 2.5% to 3.5%, quarter in and quarter out," Carroll said. "That's how we can believably contribute double-digit earnings growth over time."
He said he would like to see the wealth group contribute 15% to 20% of the company's overall net income after taxes. In the first quarter, the division contributed about 11%. "We believe we can do that without meaningful changes to our business model or acquisitions," he said, touting the company's cross-selling capabilities as a means to grow revenue.
