Bank of America wealth unit posts record $6.3 billion Q3 revenue

Bank of America’s Merrill and Private Bank divisions reported a record $6.3 billion revenue for the July‑September quarter, a 9% year‑over‑year increase, underscoring the growing importance of lending and cross‑selling to wealth clients [1].

Revenue surge powered by client lending

The revenue lift came as loan balances to wealth‑management clients rose to $253 billion, an 11% increase from the same quarter a year earlier. Advisors are increasingly bundling banking services with investment advice, a strategy that not only boosts fees but also deepens client relationships. Merrill’s co‑head Lindsay Hans noted that 26,000 new bank accounts were opened in the quarter, bringing the proportion of Merrill clients with a Bank of America account to 53%—up 10 percentage points from a few years prior [1].

Asset inflows and expense growth

Net new assets surged 10% YoY to $24 billion, pushing total assets under management to $2.1 trillion, a 13% rise. Including deposits and loans, the wealth businesses now hold $6.4 trillion in client balances, with $3.9 trillion at Merrill and $745 billion at the Private Bank [1]. The higher revenue was partially offset by a 6% rise in non‑interest expenses to $4.6 billion, reflecting “revenue‑related incentives and investments in people.” Net income climbed 19% to nearly $1.3 billion [1].

Expanding the client base

Merrill added 17,000 net new client relationships year‑to‑date, 5,400 of which were in the third quarter alone. Nearly 80% of the new households bring at least $500,000 to invest, indicating a shift toward higher‑net‑worth clientele. The firm aims to raise banking adoption among Merrill clients to 60% within the next three to four years, a target that would further embed banking services into its wealth platform [1].

What to watch

• Q4 earnings: Bank of America’s full‑year results, due later this year, will reveal whether the lending‑driven revenue growth sustains across all segments.
• Loan growth trends: Quarterly changes in client loan balances will signal if cross‑selling remains a key revenue engine.
• Expense trajectory: Monitoring non‑interest expense growth will help assess whether cost increases are keeping pace with revenue gains.

The record revenue highlights how Bank of America is leveraging its wealth‑management platform to generate banking income, a model that could become a benchmark for other large financial firms seeking to deepen client relationships and diversify earnings. The next earnings release will test the durability of this cross‑selling strategy amid broader market dynamics.