December 1, 2023

Merrill Wealth Administration’s new high executives capped off roughly their first 100 days in workplace with a quarterly decline in income however a surge in shopper relationships.

Of their first earnings since being named Merrill co-heads and presidents in late March, Lindsay Hans and Eric Schimpf boasted on Tuesday that the agency had added 26,600 shopper relationships within the first half of 2023, a 106% year-over-year enhance. Nonetheless, Merrill — which has been a part of Financial institution of America since 2008 — and its affiliated non-public financial institution ended the second quarter with $5.2 billion in income, a 4% drop from the identical interval final yr. Merrill stated low fairness and fixed-income market valuations had been guilty.

Internet earnings for the unit together with each Merrill Wealth Administration and the non-public financial institution additionally declined, taking place by practically 18% yr over yr to $978 million within the second quarter. On the similar time, Merrill noticed development in each its property beneath administration and advisor headcounts.

“Regardless of difficult market circumstances, Financial institution of America’s wealth administration companies delivered robust outcomes,” Schimpf stated within the earnings name. “That is thanks largely to the efforts of our advisors and the groups they use to fulfill shopper wants whereas persevering with to draw new purchasers.”

A lot curiosity has connected to Hans and Schimpf’s plans for Merrill following the departure of the unit’s former president, Andy Sieg, for Citigroup in late March. Schimpf stated his and Hans’ priorities have included filling management roles and assembly with agency representatives all through the nation.

“We’re seeing it firsthand as we’re out on the roads, assembly with our teammates, our advisors, our shopper associates, market executives and our specialists in over 20 markets from Los Angeles, Philadelphia, Palo Alto, Chicago, Atlanta, Miami, Detroit and lots of others,” he stated.

Learn extra: Half of wealth administration purchasers may very well be a flight threat: report

Hans stated she and Schimpf have recognized a handful of tendencies that can affect the agency’s plans in future. Wealth will proceed to develop at a quick tempo within the U.S., Hans stated, and know-how will play an ever greater position in wealth administration as purchasers will come to look to advisors and advisory groups to supply solutions to all kinds of monetary questions starting from investing to banking.

“We predict massive groups are going to get greater,” Hans stated.

To see extra highlights from Merrill’s second-quarter earnings, scroll down. To learn in regards to the agency’s first-quarter earnings, click on right here. For the fourth quarter, click on right here.