Bank of America has today reported that net income at its Global Wealth & Investment Management division swelled by 38 per cent from the second quarter of 2012 to $758 million as at June 30, 2013. Net income at the GWIM unit rose $38 million from $720 million during this year’s second quarter.

The US-listed bank said the pre-tax margin was a “record” 28 per cent for Q2 2013, up from 21 per cent in the year-ago quarter.

Revenue at end-June 2013 was up 10 per cent from the year-ago quarter to $4.5 billion, which BoA attributed to higher asset management fees related to higher market levels and long-term AuM flows, along with higher transactional revenue and higher net interest income.

Meanwhile, the provision for credit losses dropped $62 million from the year-ago quarter to a $15 million benefit, BoA said, “driven by credit quality improvement.” Higher volume-related expenses - partially offset by lower personnel costs – drove non-interest expenses increased year-on-year 3 per cent to $3.3 billion.

Assets management fees expanded by 10 per cent over the year to reach $1.7 billion, while assets under management stood at $743.6 million at June 30, 2013, down slightly from $745.3 million at the end of Q1 2013, but up from $667.5 million a year ago (a yearly increase of 11 per cent). Long-term AuM flows “more than doubled” from the year-ago quarter to $7.7 billion, BoA said.

Excluding balances transferred to consumer and business banking, client balances at the GWIM division rose 8 per cent from Q2 2012 to $2.2 trillion, “reflecting higher market levels and net inflows, driven by client activity in long-term AuM, deposits and loans,” the bank said.

For the group as a whole, Bank of America Corporation reported that net income shot up 63 per cent from $2.5 billion in Q2 2012 to $4 billion at June 30, 2013. Net income is up from $1.5 billion recorded at the end of the first quarter.

Revenue, net of interest expense and on a fully taxable-equivalent basis, inched up 3 per cent to $22.9 billion from $22.2 billion a year ago.

A year ago, BoA agreed to sell its non-US wealth management arm to Julius Baer, the Swiss private bank.