Second quarter net income at Bank of America
Global Wealth and Investment Management (BofA) reached $506m as at
30 June, representing a 5% quarter-on-quarter decline from $533m
since 31 March 2011.
However, the division’s year-on-year net
income grew by 54% from $329m in June 2010.
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The firm said that the year-on-year growth was
achieved due to higher net interest income as a result of deposit
growth, higher fee-based income and lower credit costs.
BofA’s assets under management (AuM) also
declined, this time by 1% on a quarter-to-quarter basis – from
$664bn, as at 31 March 2011, to $660.9bn. The bank did not disclose
a full breakdown of client balances meaning an accurate AuM level
minus deposit figures, and loans and leases could not be
calculated.
BofA enjoyed a 12% year-on-year growth from
$591.8bn a year ago.
Meanwhile, BofA Corporation reported a
net loss of $8.8bn for the second quarter of 2011, compared with net income
of $3bn in the corresponding period in 2010.
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By GlobalDataGlobal Wealth and Investment Management has
added 546 financial advisers in the second quarter and 942 since
the second quarter of 2010.
Worrying net income trend?
BofA’s rivals JP Morgan also saw similar net
income decline in its asset management business, which includes its
private banking division, in its second quarter results.
JP Morgan Asset Management’s quarterly net
income was $439m as at 30 June 2011, a 6% quarter-on-quarter
decline from $466m as at 31 March. Similar to its rivals, JP
Morgan’s year-on-year figure showed a 12% growth from $391m as at
30 June 2010.
Total AuM rose by $181bn to about $2trn,
representing 16% year-on-year growth.
JP Morgan said the rise in AuM was due to the
effect of higher market levels and net inflows to long-term
products, partially offset by net outflows from liquidity
products.
Citi opaque on net income and AuM,
revenue up
Citigroup did not disclose the net income
figures and the total amount of AuM in its private banking
operations.
Citi Private Bank revenues were to $555m as at
30 June, representing a 8% quarter-on-quarter growth, compared with
$515m as at 31 March 2011.
The private bank also grew its revenue by 8.4%
on the year-on-year basis, from $512m in June 2010.
Citi’s revenue for the first 6 months of 2011
reached $1.07bn, a 6% year-on-year rise, from $1.01bn in the
corresponding period in 2010.
