Intelligent Advisor

BofA’s Wealth Management Margins Jump to 26%


Bank of America’s global wealth and investment management group, which includes Merrill Lynch, reported a record pre-tax margin of 26 percent for the first quarter of 2013, up from 21 percent a year ago. Within Merrill, long-term AUM flows grew to $18.7 billion, up $8.2 billion from last quarter.

Meanwhile, the firm’s advisor count ended at 16,100, down from 16,400 in the fourth quarter and 16,700 in the year-ago quarter. The firm attributed the decline to attrition of underperforming advisors in the practice management development (PMD) program.

Advisor productivity averaged $971,000 for the quarter, up 4.7 percent from the fourth quarter.

GWIM posted net income of $720 million, up 31 percent from a year ago, on revenue of $4.4 billion, up 7 percent from 2012. The increases were driven by higher asset management fees related to higher market levels and long-term AUM flows, higher transactional revenue and higher net interest income.

The group’s AUM jumped to $67.7 billion, a result of positive asset flows and market impact.   

Assets under management grew $67.7 billion from the first quarter of 2012 to $745.3 billion, driven by long-term AUM flows and market impact.


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Diana Britton

Diana Britton is the Managing Editor of and REP. Magazine, covering asset management and independent broker/dealers from all angles. A native of Los Angeles, she now lives in...

Ryan W. Neal

Ryan W. Neal is an associate editor for Originally from Sacramento, Calif., Ryan studied English and philosophy at UC Santa Barbara and found his way into journalism. After...
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