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July 17, 2020

Bank of America wealth income slips in Q2

The Global Wealth and Investment Management (GWIM) division of Bank of America (BofA) has reported a 42% slump in net income amid the Covid-19 crisis that continues to upend markets.

Key GWIM metrics

The unit’s net income in Q2 2020 stood at $624m, compared to $1.07bn in the previous year.

Total quarterly revenue of $4.42bn was 10% lower than the prior year.

Merrill Lynch registered revenue of $3.62bn, a 10% decrease from a year ago. Revenue also dropped at Bank of America Private Bank, to $800m from $853m.

Non-interest expense at GWIM remained almost unchanged at $3.46bn.

Assets under management were $1.22trn at the end of June 2020, compared to $1.2trn a year ago.

Client balances increased slightly to $2.92trn over the period.

Group highlights

Overall, the banking group reported a profit plunge as it put aside $4bn to cover loan losses linked to the Covid-19 pandemic.

The bank’s net income in the April-June quarter more than halved to $3.53bn from $7.35bn in the prior year.

Total revenue at the group dropped to $22.32bn from $23.08bn.

BofA chairman and CEO Brian Moynihan said: “We provided billions in credit to clients; announced a $1 billion, four-year commitment to drive economic and racial equality in our communities; strengthened our balance sheet by increasing deposits, capital and loan loss reserves; invested in technology and equipment to help keep our employees safe; and delivered for shareholders, earning more than twice our quarterly dividend.”

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