Net income at Bank of America/Merrill Lynch’s
(BofA) global wealth and investment management unit (GWIM) dropped
almost 40% in the fourth quarter when compared to the three months
to 30 September 2011.
Net income for the GWIM unit slid $98m to
$249m which represented a 22% decrease from the 2010 fourth quarter
when the bank’s GWIM division netted $319m.
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However total net income for the GWIM division
rose 23% to $1.6bn for the twelve months to 31 December 2011.
Lower revenue and increasing
expenses
BofA said income was down because of lower
market driven revenue, caused by lower investment and brokerage
income driven by suppressed third quarter market levels and lower
transactional activity.
Higher expenses in areas such as litigation,
severance and Federal Deposit Insurance Corporation (FDIC) were
cited as another reason for the drop in income.
Assets under management (AuM), defined as AuM
and client brokerage assets, dropped 2% year-on-year to
$1.67trn.
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