Merrill Lynch Wealth Management attracted record revenue in the first quarter of 2022 even as the stock market struggled with inflation, rising interest rates that may continue to climb and geopolitical conflict.
Merrill said the increase was driven by higher asset management fees and strong growth in deposits and loans, which drove net interest income higher.
Client balances rose, the result of market gains and net inflows of money, according to Bank of America’s April 18 first quarter earnings report. The number of clients was also up. Merrill Lynch Wealth Management added thousands of households.
After his presentation, Andy Sieg, president of Merrill Lynch Wealth Management, took a number of questions about alternative investments and advisor headcount.
He said the firm has made a number of new hires in its alternative investment business. Client portfolios, said Sieg, have traditionally been underallocated to alternatives.
“Up until a few years ago, they were unwieldy, with operational concerns and barriers … but have moved far over the past five years to develop products that are suited to retail investors,” he said.
As for advisors, Sieg said total advisor headcount was down in the quarter year over year, and he attributed that to trainee headcount being down. He said there was an 18-month trainee hiring pause during the height of the pandemic, but said the firm is preparing to launch a new flagship advisor development program.
Scroll down to see the highlights of Merrill Lynch Wealth Management’s quarterly results.