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Bank of America wealth unit reports rise in profits in Q2

The Global Wealth and Investment Management (GWIM) arm of Bank of America has recorded a net income of $1.2bn in Q2 2022, a 16% increase from $992m in the second quarter of 2021.

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GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
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Revenue increased 7% year-on-year to $5.4bn on the back of NII benefit from higher balances and higher interest rates.

Noninterest expense increased 2% to $3.9bn during this period, due to higher employee-related expenses.

Total client balances decreased 8% to $3.4trn, driven by lower market valuations. Net client flows partially offset this decrease, the bank said.

The unit registered AUM flows of $53trn since Q2 2021. The average deposits climbed 9% to $364bn during the period while the average loans and leases grew by 13% to $219bn.

Overall, Bank of America reported a profit of $6.2bn for the three months to 30 June 2022, a nearly 32% drop from $9.2bn a year ago.

Profit applicable to common shareholders plummeted to $5.93bn, or $73 per share, during the period from $8.96bn, or $1.03 per share, a year earlier.

Revenue in the quarter, net of interest expense, surged 6% to $22.7bn.

Bank of America CEO Brian Moynihan said: “Our US consumer clients remained resilient with continued strong deposit balances and spending levels. Loan growth continued across our franchise and our markets teams helped clients navigate significant volatility reflecting economic uncertainty.

“As we enter the second half of the year, we believe we are well-positioned to deliver for our shareholders while continuing to invest in our people, businesses and communities.”

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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