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April 19, 2022

Bank of America wealth business Q1 profit jumps 28%

The Global Wealth and Investment Management (GWIM) division of Bank of America has recorded a net income of $1.1bn for Q1 2022, a surge of 28% from $883m in the year-ago quarter.

The division’s total revenue jumped 10% to $5.5bn from $4.9bn in the year-ago quarter.

Total client balances increased 7% to $3.7trn on the back of net client flows and higher market valuations.

The unit registered AUM balances of $1.6trn during the quarter.

Overall, Bank of America group registered a 12% decline in Q1 2022 profit compared with the year-ago period.

The bank’s net income totalled $7.1bn in the three months to March 2022, versus $8.1bn in the same period a year earlier.

Net interest income rose 13% to $11.6bn in the quarter on the back of strong deposit growth and investment of excess liquidity, loan growth and benefits from higher long-end interest rates.

Noninterest income dropped 8% to $11.7bn, majorly due to lower investment banking revenue.

Commenting on the performance, Bank of America chair and CEO Brian Moynihan said: “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 $70bn and deposits by $240bn.

“Our teammates supported our clients while managing through the impacts of the pandemic, war in Ukraine, and an evolving rate environment. Our strong first quarter client activity drove results that allow us to deliver for shareholders while continuing to invest in our people, businesses, and communities.”

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