Net Income Rises At BoA's Wealth Management Arm

Editorial Staff

19 April 2022

Bank of America’s wealth management business, including its private banking arm, has reported a 28 per cent year-on-year rise in net income to $1.1 billion for the first quarter of 2022, based on $5.5 billion of revenues, which rose 10 per cent.

Non-interest costs rose 4 per cent to $4.0 billion, mainly caused by higher revenue-driven incentives, BoA said yesterday.

Client balances stood at more than $3.7 trillion, up $234 billion, or 7 per cent, driven by net client flows and higher market valuations, said.

There have been $64 billion of AuM flows since the first quarter of 2021.

Merrill Wealth Management added about 6,900 net new households; the private bank added around 830 net new relationships. The wealth management business of BoA logged a pre-tax margin of 27 per cent in the quarter, an increase of 24 per cent on a year ago.

The Merrill wealth business logged $1.2 trillion of assets under management, up 8 per cent; the private banking arm had AuM balances of $334 billion, rising 3 per cent. (Family Wealth Report spoke to the firm's private banking business in February to catch up on its strategy and approach).

Among other details, the private bank's roster of private client advisors rose 8 per cent on a year earlier and this arm of the group had around 2,800 planning conversations.

Across the whole BoA group, pre-tax, pre-provision income rose 8 per cent to $7.9 billion; revenue, net of interest costs, rose 2 per cent to $23.2 billion.
of 10.4 per cent.

“Across our businesses, ongoing organic growth combined with good expense management drove operating leverage for the third consecutive quarter. Year-over-year we grew loans $70 billion and deposits by $240 billion. Our team mates supported our clients while managing through the impacts of the pandemic, war in Ukraine, and an evolving rate environment,” chair and chief executive Brian Moynihan said.