Bank of America’s (BofA) wealth management branch is setting its sights on medium-term net new asset growth of 4% to 5%, according to statements from executives at the bank’s latest investor presentation, as reported by Reuters.
Merrill Wealth Management co-president Eric Schimpf stated that pre-tax margins could expand between 4% and 6% over the coming years.
Schimpf also projected that fee-generating assets could rise by $135bn to $150bn each year.
Schimpf was quoted by the news agency as saying: “We have the scale and we have the infrastructure to be outpacing the industry in terms of growth.”
Barclays noted in a recent analysis that the wealth management pre-tax margin at Bank of America was 26% in the third quarter (Q3), trailing some competing institutions.
Lindsay Hans, who shares the role of co-president at Merrill Wealth Management, told that revenue is expected to climb at twice the rate of expenses.
BofA’s core wealth operations, which include both Merrill Wealth Management and its private banking services, currently manage around $4.6tn in client assets.
This figure is lower than competitors such as JPMorgan, which oversees $6.8tn, and Morgan Stanley with $7tn, Reuters said.
For Q3 2025, BofA’s Global Wealth & Investment Management unit reported approximately $2.1 trillion in assets under management (AUM), an increase of 13%.
During this period, the bank also established about 5,400 new client connections across Merrill and Private Bank and also said to have opened roughly 32,000 new bank accounts.
In addition to its core operations, wealth assets managed within BofA’s consumer banking arm bring total overseen assets up to $6.4tn.
Hans and Schimpf are responsible for over 25,000 staff who support individuals and businesses across the US with investment and wealth management services.
The bank’s consumer banking business continues to be among the largest nationally, with average deposits reaching $947bn, a 32% rise since late 2019, the report said.
Earlier this year, Merrill Wealth Management launched an ultra-high-net-worth (UHNW) advisory group.
The group consists of more than two dozen specialists who assist advisors in offering tailored services to this clientele segment and aims to utilise broader resources across the bank to address complex requirements.
