Bank of America wealth arm Q3 profit dips. Credit: geralt from Pixabay.

The Global Wealth and Investment Management (GWIM) unit of Bank of America has recorded a net income of $1.19bn for the third quarter of 2022, down 3% compared with $1.23bn a year ago.

For the quarter ended 30 September 2022, the unit’s revenue rose by 2% year-on-year to $5.43bn.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The increase in revenue has been fuelled by additional net interest income (NII) and partly minimised by the effect of reduced market valuations on noninterest income, the bank said.

Noninterest expense grew 2% to $3.8bn in Q3, owing to investments in the division. However, reduced revenue-related incentives have partly offset this growth, noted the bank.

Total client balances decreased 12% to $3.2tn due to lower market valuations and net client flows.

The unit’s AUM balances totalled $1.3tn. It recorded $42bn of AUM flows since the third quarter of last year.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In addition, Bank of America added over 5,700 net new relationships throughout its Merrill and Private Bank arms.

Overall, the banking group’s net income fell slightly to $7.1bn in the third quarter of this year from $7.7bn a year ago.

The bank noted that it revenue, net of interest expense, climbed 8% to $24.5bn during the quarter.

Bank of America chair and CEO Brian Moynihan said: “We continued to see strong organic client growth across our businesses, with increased client activity helping to drive revenue up by 8%.

“Our US consumer clients remained resilient with strong, although slower growing, spending levels and still maintained elevated deposit amounts.

“Across the bank, we grew loans by 12% over the last year as we delivered the financial resources to support our clients.”