Wells Fargo no longer reports how many financial advisors it employs

Wells Fargo will no longer disclose how many financial advisors it employs.

In the first quarter, the bank’s wealth and investment management division brought in $3.7 billion in total revenue, a 2% drop from the year-ago period. Net income for the quarter was $457 billion, and Wells Fargo reported a total of $1.9 trillion in client assets.

However, an update on advisor head count was nowhere to be found in the earnings reports published Friday. In January, Wells Fargo reported a head count of 12,027 advisors, an increase of 16 from the previous quarter and a year-over-year decrease of 340.

A company spokesperson confirmed that Wells Fargo is no longer making the information available.

“Following similar trends in the industry, and aligning with our peers, Wells Fargo Wealth & Investment Management no longer reports gross advisor headcount,” the spokesperson said in an email.

Morgan Stanley and Bank of America have also stopped disclosing advisor head count in recent years, according to Barron’s.

Wells Fargo attributed the modest dip in wealth management revenue to non-interest income declining 11% year-over-year on lower asset-based fees driven by a decrease in market valuations. However, higher interest rates drove a 31% year-over-year increase in net interest income.

Total NII across the bank rose to $13.3 billion in the first three month of the year, up 45% from a year earlier, which beat Wall Street analysts’ expectations, according to Bloomberg.

Friday’s earnings report reflected a volatile quarter that saw the collapse of three regional banks. Wells Fargo was one of 11 banks that helped shore up First Republic Bank in the wake of consumer panic following the collapse of Silicon Valley Bank. Wells Fargo contributed a $5 billion uninsured deposit into First Republic Bank to help provide liquidity.

“We’re glad that the work we have completed over the last several years has put us in a position to help support the U.S. financial system,” Wells Fargo CEO Charlie Scharf said on a conference call to discuss the firm's first quarter earnings. “I’m proud of everything our employees have done during this historic period to be there for our customers. We believe banks of all sizes are an important part of our financial system, as each is uniquely position to serve their customers and communities.”

Scharf also assured investors that Wells Fargo’s operating model is different than that of the regional banks that failed during the quarter.

“These particular banks had concentrated business models with heavy reliance on uninsured deposits,” he said.  “Our franchise, and those of many other banks, operate with a broader business model and more diversified funding sources.”

 In recent months, investors have become increasingly worried about commercial real estate credit quality, with large swaths of offices sitting empty in major metropolitan areas across the country in the aftermath of the pandemic. Wells Fargo said that roughly 12% of its office loan portfolio is owner-occupied, and nearly one-third have recourse to a guarantor.

The company reported an 8% drop in firmwide deposits, noting that the decline was fueled by customers migrating to higher-yielding alternatives and an increase in consumer spending. Average deposit costs soared to 83 basis points compared with just 3 basis points a year ago.

Expenses, a key focus of Scharf’s turnaround effort, totaled $13.7 billion, slightly higher than analysts expected. That helped bring Wells Fargo’s efficiency ratio, a measure of profitability, to 66%.

Scharf also announced that Mary Mack, the former head of Wells Fargo Advisors, is retiring. Saul Van Beurden, Wells Fargo’s head of technology, will succeed her, effective May 15.

Additional reporting provided by Bloomberg News.

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