Bank of America has experienced significant growth in its wealth management division, adding 33,500 new client relationships this year. The bank predicts that 2023 will be a record-breaking year for new account acquisitions.
The Merrill Lynch and private bank segment has seen a 20% increase in the number of clients so far this year, with an additional 7,000 clients added in the third quarter. Bank of America's Chief Financial Officer, Alastair Borthwick, stated that both Merrill and the private bank continue to experience robust organic growth.
In terms of overall performance, Bank of America had a solid quarter, exceeding analysts' forecasts with earnings of 90 cents per share on revenue of $25.2 billion. The Merrill Lynch and private bank businesses contributed approximately one-fifth of the overall revenue, generating $5.3 billion in the third quarter. This figure was slightly lower than the previous year, but up 1% from the second quarter of 2023.
Bank of America attributed the decrease in revenue from the wealth segments to lower net interest income. However, asset management fees were boosted by higher market valuations and an influx of new clients.
The Global Wealth and Investment Management segment recorded a net income of just over $1 billion, a 13% decrease compared to the third quarter of 2022.
Merrill Lynch played a significant role in the growth of the client base, adding approximately 6,300 net new households in the third quarter of 2023, marking a 22% increase from the same period in 2022. The total assets under management for Merrill Lynch amounted to $1.2 trillion in the third quarter.
Overall, Bank of America's wealth segment witnessed inflows of $14 billion in the third quarter, with total inflows reaching $87 billion over the past four quarters.
Bank of America reported that advisors within Merrill Lynch have been successful in attracting 1.7 times more new clients in 2023 compared to the same period in 2022.
