The Charlotte, North Carolina-headquartered bank reported a broadly stronger set of figures within its wealth and investments arm. For the overall group, net income dipped, as rising revenues were offset by falling net interest income and rising costs.

The wealth and investment management arm of Bank of America yesterday reported a rise in its second-quarter net income to $1.026 billion from $978 million a year before. Total revenue rose to $5.574 billion from $5.242 billion.

Noninterest expenses rose to $4.199 billion from $3.925 billion, BoA said in a statement. 

Revenue growth was driven by a 14 per cent increase in asset management fees, helped by higher market levels and asset inflows, partly outweighed by a fall in net interest income. BoA had record client balances of over $4 trillion, up 10 per cent. 

In the second quarter, BoA’s wealth and investment business logged $11 billion in AuM inflows; average deposits, at $288 billion, fell by 3 per cent, it said. 

On the private banking side, it recorded record client balances of $640 billion, and in assets under management, balances of $385 billion. A total of 630 net new client relationships were recorded in Q2.

Within the Merrill Wealth Management side, client balances were a record $3.4 trillion and AuM balances stood at $1.4 trillion, and about 5,500 net new households signed up as clients.

The bank also gave details on the level of digital engagement with clients, showing that 92 per cent of private bank customers are digitally active; digital wallet transactions rose 44 per cent in the reporting period. On the Merrill side, 85 per cent of households are digitally active.

At the group level, BoA said net income in Q2 dropped to $6.9 billion from $7.4 billion. Revenue rose, reflecting higher asset management and investment banking fees, as well as higher sales and trading value, but net interest income fell and provision for credit losses rose in the reporting period. Noninterest expenses rose.