Bank of America Wealth Business Reports Record Revenue

The bank’s wealth device created $5.4 billion in revenue for the 2nd quarter, up 7% from the earlier yr, in accordance to the company’s earnings report. Net curiosity money soared 33% year about 12 months, achieving a history $1.8 billion. The wealth unit’s common deposits increased 9% to $364 billion, and normal financial loans and leases grew 13% to $219 billion, the organization reported.

Andy Sieg, president of Merrill Lynch Prosperity Administration, says the company has been earning a concerted effort and hard work to be a one particular-halt shop for clients’ every single fiscal have to have, incorporating that lending experts operate along with advisors on a nearby foundation.

“We have above 1,000 banking and lending specialists who are part of BofA and perform with advisors and clientele,” Sieg reported throughout a media call July 18. “They are the bridge involving the Merrill Lynch prosperity administration enterprise and Lender of America’s entire world-class abilities.”

The surge in internet interest profits offset decrease transaction and cost-dependent revenue. Whole consumer balances for BofA’s wealth device dropped 8% to $3.4 trillion, pushed by decreased industry valuations, according to the business. The device reported just $1 billion in web new shopper belongings underneath management, in contrast with $12 billion for the very same period previous yr. 

Lender of America’s wealth management business is 1 of the major in the nation. In addition to Merrill Lynch, it contains a electronic assistance platform and a personal bank. Inspite of current market volatility, Merrill Lynch advisors brought in around 4,500 web new client homes throughout the quarter. That was down from the around 6,000 web new households advisors included through the identical period of time very last yr.

Bank of America’s prosperity unit counted 18,449 prosperity advisors at the close of the quarter, down 122 from the preceding quarter. The company does not crack out advisor headcount for Merrill Lynch.

Wells Fargo

and

Morgan Stanley
,
both equally of which issued earnings stories final 7 days, also documented surges in web interest revenue for their prosperity administration enterprises.

Over-all, Financial institution of America said it expects web interest money to enhance by amongst $900 million and $1 billion in the course of the 3rd quarter from the next quarter, CFO Alastair Borthwick explained throughout an analyst phone on Monday. Companywide, total revenue rose 6% yr in excess of yr to $22.7 billion. Gains dropped 32% to $6.2 billion because of in element to increased provisions for credit rating losses.

CEO Brian Moynihan claimed in a statement that “solid consumer exercise across our companies, coupled with greater interest rates, drove strong web desire revenue progress and permitted us to carry out very well in a weakened money markets environment.”

Write to Andrew Welsch at [email protected]