The Global Wealth and Investment Management (GWIM) unit of Bank of America (BofA) has reported a net income of $742m for the fourth quarter of 2017, an increase of 17% compared to $634m in the year ago period.
The unit’s total revenue for the quarter ended 31 December 2017 was $4.68bn, up 7% from $4.37bn in the corresponding quarter of 2016.
Assets under management totalled $1.08 trillion at the end of the fourth quarter, as against $886.15bn at the end of December 2016.
The unit’s non-interest expense rose 3% to $3.47bn from $3.36bn a year earlier. Client balances were $2.75 trillion at the end of December 2017, as against $2.5 trillion a year ago.
Overall, the banking group posted a net income attributable to common shareholders of $2.08bn for the fourth quarter of 2017, a fall of 50% compared to $4.17bn a year ago. The decline in profit was triggered by a $2.9bn charge booked by the bank owing to the recent US tax reforms.
The group’s total revenue rose 2% year-on-year to $20.43bn.
BofA CEO Brian Moynihan said: “Responsible growth delivered solid results in 2017. Pretax earnings rose 17 percent, and we continued to close in on our long-term return targets.
“We gained market share across our businesses while carefully managing credit, risk exposures, and expenses. We invested in technology, client engagement, and in our own team, including the $1,000 bonus we announced last month for 145,000 employees. We also shared our success with stakeholders through our high level of funding philanthropic initiatives, our 2 million employee volunteer hours, and our commitment to long-term shareholder value by returning nearly $17 billion in capital through common stock repurchases and dividends.”