The Global Wealth and Investment Management segment of Bank of America has reported a net income of $690m for the second quarter of 2015, down 5% compared to $726m a year ago.
For the quarter ended 30 June 2015, the division’s revenue was relatively stable at $4.6bn, as 9% rise in asset management fees and higher net interest income from loan growth was offset by the impact of the company’s allocation of ALM activities on net interest income, and lower transactional revenue, the bank said in a statement.
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During the period, the wealth arm’s total client balances increased 2.2% from the year-ago quarter to more than $2.5 trillion.
Assets under management rose by 5.8% to $930m from $879m in the year ago quarter. Asset management fees increased 9% from the second quarter of 2014 to $2.1bn.
During the quarter return on average allocated capital was 23%, compared to 24% in the year-ago period.
Overall, the Bank of America reported a net income of $5.3bn for the second quarter of 2015, compared to $2.3bn a year ago.
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By GlobalDataBank of America CEO Brian Moynihan said: "Also, we continued to deliver value for our shareholders by increasing tangible book value and returning $1.3 billion in capital through common stock repurchases and dividends."
Bank of America CFO Bruce Thompson said: "We strengthened an already strong and highly liquid balance sheet this quarter. Equally important, we put our balance sheet to work this quarter, growing core loan balances while maintaining strong risk underwriting."
