What You Must Know
- Whole shopper belongings for Merrill Lynch neared $3.4 trillion, whereas BofA Non-public Financial institution belongings have been roughly $663.7 billion.
- Merrill gained about 7,300 web new shopper relationships within the first quarter, consistent with the 2 prior quarters.
- The executives mentioned demand is rising for various assist companies amongst high- and ultra-high-net-worth purchasers.
Financial institution of America’s International Wealth and Funding Administration unit noticed its first-quarter income develop 5% yr over yr to $5.6 billlion, whereas its earnings jumped 10% to $1 billion.
“Document income … elevated 5% from Q1’23, pushed by 12% larger asset administration charges, as a consequence of larger market ranges and powerful AUM flows, partially offset by decrease web curiosity earnings,” the agency mentioned Tuesday in its newest earnings report.
Whole shopper belongings for Merrill Lynch Wealth Administration neared $3.4 trillion, whereas BofA Non-public Financial institution belongings have been roughly $663.7 billion.
On a mixed foundation, the financial institution’s GWIM enterprise unit reported shopper balances of practically $4 trillion for the interval ending March 31, up 13% from a yr in the past, pushed by larger market valuations and constructive web shopper flows.
(Rival Morgan Stanley’s wealth unit had $5.5 trillion of shopper belongings as of March 31 — $4.3 trillion of that are in its advisor-led channel.)
Merrill gained about 7,300 web new shopper relationships within the first quarter, consistent with the 2 prior quarters however down on a yearly foundation, in keeping with Lindsay Hans and Eric Schimpf, co-heads of the enterprise.
“Most of the new relationships begin inside the retail financial institution, and they’re then linked to us for his or her rising and extra advanced wealth wants,” Hans mentioned Tuesday on a name with media.
“In Q1, we practically doubled the brand new belongings generated from these inbound referrals, and that’s over a file tempo set in 2023,” he mentioned. “The size of this chance is unbelievable, with 69 million clients on the industrial financial institution.”
GWIM’s web flows of belongings underneath administration within the newest interval have been $24.7 billion, up from $15.2 billion a yr in the past and $8.4 billion within the prior interval.
Financial institution Relationships
Many banking purchasers have adequate wealth and monetary complexity to be served by a Merrill advisor, Hans emphasised.