Bank of America remains positive about their business model due to the increased growth in its wealth management division. According to BofA Remains Confident in Wealth Businesses As Assets Sink, Matt Ackermann states,
“The Charlotte, N.C. company, which reported stronger than expected second quarter earnings on Friday, highlighted increased referrals and strong organic growth from its wealth businesses.”
This report comes after Bank of America’s assets under management had decreased. These assets decreased largely because of the downturn in the markets. With Bank of America teamed up with Merrill Lynch, they are able to grow the wealth management division. Matt Ackermann states,
“Bank of America (BAC) said that referrals between its global wealth and investment management business and its commercial and corporate businesses increased 24% from the first quarter and Bank of America Merrill Lynch remained the largest nationally in terms of net investment banking revenues with a 13% market share…”
Bank of America has also launched Merrill Edge for self-directed investors and hopes to increase the wealth management division with this addition. According to Matt Ackermann,
“Since it was launched, Merrill’s advisors have…followed up with 7,000 qualified contacts.”