Net income at the Global Wealth and Investment Management (GWIM) division of Bank of America (BofA) slumped 32% in Q3 2020 compared to the prior year though it was 20% higher than the previous quarter.
The unit’s net income for the three-month-period ending 30 September 2020 was $749m, versus $1.1bn a year ago.
Total revenue, net of interest expense was $4.54bn in the quarter, of which Merrill Lynch Global Wealth Management generated $3.75bn while the remainder was contributed by Bank of America Private Bank.
The division’s total revenue in Q3 2019 was $4.9bn, up 8% from the figure in Q3 2020.
Noninterest expense at GWIM rose to $3.53bn from $$3.41bn, mainly due to higher revenue-related incentives as well as investments in primary sales professionals.
Total client balances increased 6% to $3.1trn.
Commenting on the performance, BofA chairman and CEO Brian Moynihan said: “Our Wealth Management business showed once again why it is an industry leader in providing timely advice and guidance to clients, and our Global Banking and Global Markets businesses continued to support the global economy by helping clients raise capital, manage risk and increase liquidity.
“We also supported our communities by making progress on our $1 billion commitment to drive racial equality and issuing a $2 billion Equality Progress Sustainability Bond.”
At a group level, the banking group missed the estimates, with revenues dropping 11% to $20.33bn from $22.81bn.
The group’s profit of $4.9bn was 16% lower than previous year.
However, the bank followed the footsteps of its Wall Street rivals this quarter in lowering its loan loss provisions.
The group’s provision for credit losses in Q3 2020 was $1.39bn, compared with $5.12bn in the previous quarter.