Merrill Lynch concluded Q3 with $3.5 trillion in client assets, marking an 18% increase from the same period in 2023.
Bank of America’s private bank achieved similar growth, ending the quarter with $667 billion in client balances, up 16% year-over-year.
Merrill's standout performance came from its Investment Advisory Program, a fiduciary advice channel that closed the quarter with a record $1.5 trillion in assets under management, reflecting a 26% year-over-year increase. This program provides clients access to a dedicated advisor and a broad range of investment options and services, such as periodic account reviews under a fee-based model.
Merrill Lynch executives highlighted the firm's multi-faceted growth strategy during a Q3 earnings call, focusing on expanding their service offerings and targeting a more affluent client base.
As part of this approach, Merrill added nearly 4,800 new clients during the third quarter, many of whom skew toward higher net worth.
“Considering the typically slower summer period, we are very pleased with these results,” said Lindsay Hans, president and co-head of Merrill Lynch Wealth Management. “While the number of new clients remains steady, we’re seeing a shift toward attracting more affluent clients, which is a key focus of our growth strategy.”
Bank of America reported Q3 earnings of $0.81 per share, surpassing analysts’ projections of $0.76. Though net income for the bank dipped from last year, it still reached $6.9 billion, significantly exceeding the anticipated $6.1 billion.
For the wealth management division, a core part of the growth strategy includes leveraging Bank of America's extensive consumer banking network to fuel the advisor business.
In line with this, Bank of America recently announced plans to open 165 new branches by 2026, a move designed to drive Merrill’s client expansion through internal referrals to bank-based advisors. “We expect this initiative to further strengthen our business,” said Eric Schimpf, president and co-head of Merrill Lynch Wealth Management.
Currently, over 60% of Merrill’s clients also maintain a banking or lending relationship with Bank of America, Schimpf added, with some regions experiencing even higher integration.
“In markets where we have a robust Bank of America presence and strong local Merrill leadership, we are seeing client overlap rates reaching upwards of 70%,” Schimpf noted.
