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August 31, 2015 at 08:00 PM
Bank of America reported second quarter earnings of $5.3 billion, $0.45 per share, vs. $2.3 billion, or $0.19 per share, in the year-ago period. Revenue, net of interest expense, increased 2% to $22.3 billion.
Its wealth management operations had net income of $690 million, down from $726 million in the second quarter of 2014. Revenue was $4.57 billion, down slightly from a year ago, while the pre-tax margin was 24%.
The unit had a jump in its total client balances of $53.5 billion from the year-ago quarter to more than $2.5 trillion. In the second quarter, flows of long-term assets under management were $8.6 billion. Asset management fees grew 9% to $2.1 billion, and average loan balances increased 10% to $130.3 billion.
The number of financial advisors is about 16,419, up from 15,560 last year and 16,175 in the prior quarter. These reps had yearly fees and commissions of $1.04 million on average as of June 30, unchanged for the earlier period but down slightly from a year ago.
Wealth management chief David Darnell recently announced plans to retire by the fourth quarter, after more than 35 years with the company. Upon Darnell’s retirement, Terry Laughlin will take over as head of the wealth group.
“Terry will be returning to businesses he knows well,” BofA said in an employee memo shared with the media. “Terry’s impressive background includes various senior leadership positions with Bank of America and predecessor entities including Merrill Lynch, where he was chairman and chief executive officer of Merrill Lynch Bank & Trust. In his new role, Terry will retain his current responsibility for our U.K. card business.”
