The wealth management divisions of Wells Fargo and Bank of America experienced a decline in profits during the fourth quarter of 2023.
Wells Fargo's wealth unit earnings fell by 31 percent, reaching $491 million compared to $715 million in the previous year. According to AdvisorHub, this decrease resulted from customers reallocating cash to higher-yielding alternatives and lower loan balances. Wells Fargo's Wealth and Investment Management division reported a 1 percent year-over-year drop in revenue, reaching $3.66 million from nearly $3.70 million, with loan balances falling 3 percent to $82.2 billion due to a decline in securities-based lending.
Meanwhile, Bank of America reported a 17 percent decline in net income for its Global Wealth and Investment Management division, with profits dropping to just over $1.0 billion from $1.2 billion the previous year and revenue falling 3 percent to $5.2 billion.
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