Wells Fargo Advisor Headcount Drops Again
From the Desk of Jim Eccleston at Eccleston Law LLC:
The advisor count at Wells Fargo is declining, continuing a downward trend in headcount that began after the fake accounts scandal hit the bank in 2016. The bank’s brokers, frustrated by the scandal, have transitioned to Wells Fargo’s rivals.
According to a recent FinancialPlanning article, Wells Fargo reported having 13,799 brokers at the end of the second quarter, down 427 from the year-ago period, which equals 3% loss. Headcount is also down 1,287 since the third quarter of 2016 when the bank had 15,086 advisors.
The lower headcount comes despite increased recruiting efforts this year. The bank is offering robust hiring bonuses to recruiters, and the second quarter was its best for recruiting since 2016. However, Wells Fargo would not disclose how many advisors it has hired.
A Wells Fargo spokeswoman said that the firm anticipates “continued productivity growth even if the headcount continues to decline.” Wells Fargo launched a new advisory succession program last quarter called Summit as Wells Fargo faces an aging workforce and ongoing retirements. “Interest in the program has been very strong, demonstrating that it was the right approach for the business,” the spokeswoman added.
Even with fewer advisors, Wells Fargo’s wealth management business reported a 35% increase in net income to $602 million in the last 12 months. The firm credited the rise in part to the sale in net income to $602 million in the last 12 months. The firm credited the rise in part to the sale of its ownership in the Rock Creek Group for $124 million last year.
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