In the first 100 days or so since taking the job, new Merrill Wealth Management executives have seen revenue fall quarter-over-quarter but client relationships surge.
first profit since Appointed Co-Director and President of Merrill Lynch at the end of MarchLindsay Hans and Eric Schimpf boasted Tuesday that the company added 26,600 new customer relationships in the first half of 2023, a 106% year-over-year increase. Still, Merrill — which has been part of Bank of America since 2008 — and its affiliate Private Bank ended the second quarter with $5.2 billion in revenue, down 4% from a year earlier. Merrill Lynch said low valuations in equity and fixed income markets were to blame.
Net income at the division, which includes Merrill Lynch Wealth Management and Private Banking, also fell in the second quarter, falling nearly 18% year-over-year to $978 million. At the same time, Merrill’s assets under management and the number of advisors both grew.
“Despite challenging market conditions, Bank of America’s wealth management business delivered strong performance,” Schimpf said on the earnings call. demand while continuing to attract new customers.”
Hans and Schimpf aroused great interest in Merrill’s plans The departure of former division president Andy Sieg, For Citigroup at the end of March.Schimpf said his and Hans’ top priorities included fill leadership roles And meet company representatives across the country.
“When we’re on the road with people from Los Angeles, Philadelphia, Palo Alto, Chicago, Atlanta, Miami, Detroit and many other cities,” he said.
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Hans said she and Schimpf have identified some trends that will affect the company’s future plans. Wealth in the U.S. will continue to grow rapidly and technology will play an increasing role in wealth management, Hans said, as clients turn to advisors and advisory teams to answer their financial questions, from investment to investment. to banking.
“We think big teams are going to get bigger,” Hans said.
To see more highlights from Merrill Lynch’s second-quarter earnings, scroll down. To see the company’s first-quarter earnings, Click here. For the fourth quarter, Click here.