Wealth-management results announced as part of the third-quarter earnings season are fairly mixed at the wirehouses.
Bank of America reported net income of $4.5 billion or $0.37 per share on revenue $20.7 billion, which beat estimates. Last year, the bank had a loss of $232 million, or -$0.04 per share, on sales of $21.4 billion.
“We saw solid results this quarter by continuing to execute our long-term strategy,” CEO Brian Moynihan said. “The key drivers of our business — deposit taking and lending to both our consumer and corporate clients — moved in the right direction this quarter, and our trading results on behalf of clients remained fairly stable in challenging capital markets conditions.”
In wealth management, the number of financial advisors increased by 186 from last quarter to 16,605; this is an uptick of 738 registered reps from a year ago.
Bank of America-Merrill Lynch (BAC) says the number of financial advisors increased by 186 from the second quarter to 16,605; this is an uptick of 738 registered reps from a year ago.
Productivity, though, appears to be weakening. These advisors had average yearly fees and commissions of $1.00 million as of Sept. 30 vs. $1.04 million as of June 30, 2015, and $1.08 as of Sept. 30, 2014.
The wealth-management group’s net income was $656 million, down from $812 million a year ago. Revenue also declined by nearly $200 million in Q3’14 to $4.5 billion. Assets under management for the BofA unit stand at about $2.4 trillion, a slight fall from roughly $2.5 trillion in Q2’15 and in Q3’14.