BANK OF AMERICA CORP DE
For the period ended Mar 31, 2024. Filed Apr 30, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed Apr 30, 2024
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Global Wealth & Investment Management
| (Dollars in millions) · 2024 · 2023 · % Change | |||||
|---|---|---|---|---|---|
| Net interest income | $1,814 | $1,876 | (3)% | ||
| Noninterest income: | |||||
| Investment and brokerage services | 3,600 | 3,238 | 11 | ||
| All other income | 177 | 201 | (12) | ||
| Total noninterest income | 3,777 | 3,439 | 10 | ||
| Total revenue, net of interest expense | 5,591 | 5,315 | 5 | ||
| Provision for credit losses | (13) | 25 | n/m | ||
| Noninterest expense | 4,264 | 4,067 | 5 | ||
| Income before income taxes | 1,340 | 1,223 | 10 | ||
| Income tax expense | 335 | 306 | 9 | ||
| Net income | $1,005 | $917 | 10 | ||
| Effective tax rate | 25.0% | 25.0% | |||
| Net interest yield | 2.23 | 2.20 | |||
| Return on average allocated capital | 22 | 20 | |||
| Efficiency ratio | 76.27 | 76.53 | |||
| Balance Sheet | |||||
| Average | 2024 | 2023 | % Change | ||
| Total loans and leases | $218,616 | $221,448 | (1)% | ||
| Total earning assets | 327,692 | 346,384 | (5) | ||
| Total assets | 341,119 | 359,164 | (5) | ||
| Total deposits | 297,373 | 314,019 | (5) | ||
| Allocated capital | 18,500 | 18,500 | — | ||
| Period end | March 312024 | December 312023 | % Change | ||
| Total loans and leases | $219,844 | $219,657 | —% | ||
| Total earning assets | 329,515 | 330,653 | — | ||
| Total assets | 343,718 | 344,626 | — | ||
| Total deposits | 298,039 | 299,657 | (1) | ||
GWIM consists of two primary businesses: Merrill Wealth Management and Bank of America Private Bank. For more information about GWIM, see Business Segment Operations in the MD&Aof the Corporation’s 2023 Annual Report on Form 10-K.
Net income for GWIM increased $88 million to $1.0 billion for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to higher revenue, partially offset by higher noninterest expense. The operating margin was 24 percent compared to 23 percent a year ago.
Net interest income decreased $62 million to $1.8 billion primarily driven by an increase in the deposit rate paid and lower average deposit balances.
Noninterest income, which primarily includes investment and brokerage services income, increased $338 million to $3.8 billion. The increase was primarily driven by higher asset management fees due to higher average equity market valuations and positive AUM flows, partially offset by the impact of lower AUM pricing.
Noninterest expense increased $197 million to $4.3 billion primarily due to higher revenue-related incentives.
The return on average allocated capital was 22 percent, up from 20 percent, due to higher net income. For more information on capital allocated to the business segments, see Business Segment Operations on page 8.
Average loans of $218.6 billion remained relatively unchanged compared to the same period in 2023. Average deposits decreased $16.6 billion to $297.4 billion primarily driven by clients moving deposits to higher yielding investment cash alternatives, including offerings on our investment and brokerage platforms.
Merrill Wealth Management revenue of $4.6 billion increased six percent primarily driven by higher asset management fees due to higher average equity market valuations and positive AUM flows, partially offset by the impact of lower AUM pricing.
Bank of America Private Bank revenue of $944 million increased three percent primarily driven by higher asset management fees due to higher average market valuations and the impact of positive AUM flows.
| Key Indicators and Metrics | ||
|---|---|---|
| Three Months Ended March 31 | ||
| (Dollars in millions) | 2024 | 2023 |
| Revenue by Business | ||
| Merrill Wealth Management | $4,647 | $4,397 |
| Bank of America Private Bank | 944 | 918 |
| Total revenue, net of interest expense | $5,591 | $5,315 |
| Client Balances by Business, at period end | ||
| Merrill Wealth Management | $3,339,693 | $2,952,681 |
| Bank of America Private Bank | 633,697 | 568,925 |
| Total client balances | $3,973,390 | $3,521,606 |
| Client Balances by Type, at period end | ||
| Assets under management | $1,730,005 | $1,467,242 |
| Brokerage and other assets | 1,758,642 | 1,571,409 |
| Deposits | 298,039 | 301,471 |
| Loans and leases (1) | 222,528 | 220,633 |
| Less: Managed deposits in assets under management | (35,824) | (39,149) |
| Total client balances | $3,973,390 | $3,521,606 |
| Assets Under Management Rollforward | ||
| Assets under management, beginning of period | $1,617,740 | $1,401,474 |
| Net client flows | 24,655 | 15,262 |
| Market valuation/other | 87,610 | 50,506 |
| Total assets under management, end of period | $1,730,005 | $1,467,242 |
(1)Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet.
Client Balances
Client balances increased $451.8 billion, or 13 percent, to $4.0 trillion at March 31, 2024 compared to March 31, 2023. The increase in client balances was primarily due to the impact of higher end-of-period market valuations and positive net client flows.
11 Bank of America
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