As it has done in its recent quarterly results, Bank of America spelled out the level of digital engagement of its wealth and private banking clients.

Bank of America said yesterday that its global wealth and investment management arm logged a year-on-year gain in net income at $1.171 billion in the fourth quarter of 2024, driven by a rise in net revenue of $6 billion from $5.23 billion a year earlier.

The Charlotte, North Carolina-headquartered bank said noninterest expenses in its wealth and investment business rose to $4.438 billion from $3.894 billion. There was a small ($3 million) provision against credit losses, against a net a $26 benefit in Q4 2023.

The rise in revenue was driven by a 23 per cent rise in asset management fees, Bank of America said in a statement. 

Total client balances rose 12 per cent to $4.3 trillion; in Q4, assets under management flows were $22 billion, with $79 billion since the fourth quarter of 2023.

Inside its Bank of America Private Bank, AuM balances stood at $404 billion; and total client balances were $674 billion, with 720 net new relationships added in Q4 2024.

The Merrill Wealth Management business held $1.5 trillion in AuM balances, and 3,900 net new households were added in the last quarter. 

BoA also continued to stress clients’ digital engagement, as it has done in recent quarterly reports. For example, it said that 92 per cent of its wealth clients are digitally active; digital wallet transactions rose by 46 per cent. 

Group results
Bank of America said net income stood at $6.7 billion, or $0.82 per diluted share, compared with $3.1 billion, or $0.35 per diluted share, in 4Q2024. Revenue, net of interest expense, was $25.3 billion, rising 15 per cent on a year earlier.

The bank said the revenue gains were mainly caused by higher asset management and investment banking fees, and sales and trading revenue.

The bank had a Common Equity Tier 1 ratio – a bank’s shock absorber – of 11.9 per cent on a standardized basis; the lender returned $5.5 billion to shareholders; $2.0 billion of which was done through common stock dividends and $3.5 billion in share repurchases.

“We finished 2024 with a strong fourth quarter. Every source of revenue increased, and we saw better-than-industry growth in deposits and loans,” Brian Moynihan, chief executive and chairman, said.