The Global Wealth and Investment Management segment of Bank of America has reported a net income of $656m for the third quarter of 2015, down 19% compared to $812m a year ago.
For the quarter ended 30 September 2015, the division’s revenue was $4.5bn, down $198m from $4.66bn a year ago as higher asset management fees were more than offset by lower transactional revenue and the impact of the company’s allocation of ALM activities on net interest income.
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For the third quarter of 2015, the wealth arm’s total client balances decreased 2.6% to $2.39bn from $2.46bn in the year ago quarter.
Assets under management at the unit fell by 1.2% to $877m from $888m in the year ago quarter. Asset management fees increased 2% from the third quarter of 2014 to $2.1bn.
Noninterest expense increased slightly from the year ago quarter to $3.4bn, as litigation-related costs were higher. During the quarter return on average allocated capital was 22%, compared to 27% in the year ago period.
The company said that the number of wealth advisors at the unit grew by 998 advisors from the year ago quarter to 18,037, due to continued investment within the Advisor Development program, improved recruiting and low advisor attrition levels.
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By GlobalDataThird-quarter 2015 long-term assets under management (AUM) flows of $4.4bn were the 25th consecutive quarter of positive flows, the bank said in a statement.
Overall, the Bank of America reported a net income of $4.5bn for the third quarter of 2015, compared to a net loss of $232m a year ago.
Bank of America CEO Brian Moynihan said: "We saw solid results this quarter by continuing to execute our long-term strategy. The key drivers of our business — deposit taking and lending to both our consumer and corporate clients — moved in the right direction this quarter and our trading results on behalf of clients remained fairly stable in challenging capital markets conditions."
Bank of America CFO Paul Donofrio said: "Our results this quarter reflect our ongoing efforts to improve operating leverage while continuing to invest in our business. We built capital and liquidity to record levels and grew total loans for the second consecutive quarter while continuing to operate within our risk framework."
