Net Income Dips At Bank Of America's Wealth, Investment Arm

Editorial Staff

18 October 2023

Bank of America’s global wealth and investment management arm yesterday reported net income of $1.033 billion for the third quarter of this year, slipping from $1.19 billion a year ago but up from $978 million in Q2 2023.

The Charlotte, North Carolina-headquartered group said total revenue – $5.321 billion – fell from $5.429 billion a year earlier, explaining that the decline was caused by lower net interest income, partly outweighed by higher asset management fees as markets and client flows increased. Noninterest costs rose 4 per cent on a year before.

This division of Bank of America said it made a $6 million provision for credit losses in Q3, against a $37 million net release a year before.

Total asset under management flows stood at $14 billion in the latest quarter. Client balances were $3.6 trillion, up 9 per cent as markets and inflows increased, the lender said in a statement.

Within the private banking segment, BoA said client balances stood at $573 billion, and AuM was $340 billion. During the quarter, net new client relationships rose 8 per cent, amounting to 600 net new relationships. On the Merrill Wealth Management side, client balances were $3 billion and AuM was $1.2 trillion.

The bank likes to stress the levels of digital engagement. As an example, within the private bank, 92 per cent of clients are digitally active across the enterprise and 75 per cent of eligible checks were deposited through automated channels.

Group-wide, Bank of America said net income rose 10 per cent year-on-year to $7.8 billion. Revenue, net of interest costs, rose 3 per cent to $25.2 billion. The bank had a Common Equity Tier 1 ratio of 11.9 per cent.

“We added clients and accounts across all lines of business,” Brian Moynihan, chief executive, said.