Bank of America’s Global Wealth and Investment Management business saw its 2011 fourth quarter net income decline precipitously compared to the fourth quarter of 2010 as lower transactional activity offset higher net interest income and asset management fees.
The Global Wealth and Investment Management business had $249 million in net income for the fourth quarter, down from $319 million for the same quarter in 2010. That business posted about $1.64 billion in net income for the year ending Dec. 31, 2011, up from $1.34 billion in the previous year.
Those results came as that division’s total revenue for the fourth quarter, net of interest expense on a fully taxable equivalent basis, stayed flat about $4.16 billion for the fourth quarter. Total revenue for the year was about $17.38 billion, up from $16.29 billion in 2010.
Meanwhile, its asset management fees increased to $1.5 billion, up by 4% compared to the fourth quarter of 2010. Long-term assets under management flows rose to $27 billion in 2011, up from $14 billion in 2010.
Global Wealth and Investment Management’s average loans and average deposits also increased on a quarterly and annual basis.
Average deposits rose to $249.81 billion for the fourth quarter of 2011, up from $246.28 billion in the fourth quarter of 2010. Average deposits for the year rose to $254.78 billion, a 10% increase from $232.32 billion in 2010.
Average loans rose to $102.71 billion for the fourth quarter, up from $100.31 billion the fourth quarter of 2010. Average loans for 2011 also rose to $102.14 billion, up from an average of $99.27 billion for 2010.
Global Wealth and Investment Management added more than 200 financial advisers in the fourth quarter, bringing the total added to almost 1,700 in 2011.
Lorie Konish writes for On Wall Street.
