Merrill Lynch continued to expand its ultra-high-net-worth client base in the second quarter of 2025, even as market turbulence and seasonal headwinds dampened net new asset flows.
Bank of America’s wealth management division—which includes Merrill Wealth Management and the Private Bank—reported second-quarter revenue of $5.9 billion, up 7% year-over-year, driven largely by higher AUM fees as market valuations climbed and clients deployed more capital. Client balances across Merrill, including investments, deposits, and loans, rose to $3.7 trillion, a 10% increase from the prior year.
The number of Merrill clients with $10 million or more in assets jumped 13% year-over-year, a sign that the firm continues to gain traction with the ultra-affluent. Overall net income for BofA’s wealth business edged just below $1 billion for the quarter, slipping slightly from both Q1 and the same period last year.
While core business indicators were strong, asset flows came under pressure. Merrill reported $14.3 billion in net new assets for the quarter—down 40% from Q1’s $24 billion, though up from $10.8 billion in Q4 2024. Executives attributed the dip to heightened market volatility in April, particularly after tariff-related headlines triggered a wave of client hesitancy.
“In volatile environments, it’s natural to see some clients pause before deploying new capital,” said Lindsay Hans, president and co-head of Merrill Wealth Management. “We didn’t see material outflows—just more cash sitting on the sidelines.”
Hans also pointed to the interest rate landscape, which has made cash and short-duration fixed income more attractive. That shift has steered client funds into Treasury bills and money market vehicles that don't count toward traditional AUM metrics. Additionally, seasonal tax obligations in the second quarter pulled capital from investment accounts.
Despite softer flows, Merrill’s growth in high-value relationships remained robust. Of the new clients added in Q2, 78% invested $500,000 or more, compared to 71% in the same quarter last year. Merrill continues to focus its prospecting and service model on affluent households, aligning with broader trends across the advisory industry.
On the bank side, cross-business integration continues to deepen. Eric Schimpf, co-president of Merrill, highlighted growing synergies with Bank of America’s broader suite of financial services. For the tenth consecutive quarter, the percentage of Merrill clients with an active BofA checking or savings account increased. Today, over 62% of Merrill households have a banking or lending relationship with the bank.
“Advisor teams are expanding client engagement beyond investments, helping meet complex lending and banking needs as part of a holistic strategy,” Schimpf said.
Recruiting and retention also remain firm priorities. While Merrill no longer discloses advisor headcount, Schimpf noted that recruiting remains active and that the attrition rate among veteran advisors is running well below historical averages.
From an investment perspective, Merrill’s CIO Chris Hyzy struck an optimistic tone for the coming year. He cited a combination of deregulation, increased M&A activity, and emerging investment themes such as robotics, cybersecurity, and AI-driven efficiency as long-term tailwinds for U.S. equities.
“We expect growth to rebound in 2026 after a short-term soft patch in the fall,” Hyzy said. “Financial conditions should ease over the medium term, supporting risk assets. We remain broadly bullish.”
Despite topping Wall Street’s earnings-per-share forecasts, Bank of America’s Q2 revenue missed consensus expectations. The stock traded down roughly 1.5% midday Wednesday to around $45 per share.
For RIAs and wealth professionals, Merrill’s quarter offers a snapshot of the evolving dynamics in serving affluent clients through volatile markets. The firm’s focus on integration, selective client acquisition, and cross-platform engagement reflects broader trends across the advisory landscape—where growing wallet share and durable client relationships increasingly matter more than short-term flows.
