Bank of America has reported 2006 net income up 28 per cent to $21.13 billion from $16.47 billion a year earlier, but the picture was not qu...

Bank of America has reported 2006 net income up 28 per cent to $21.13 billion from $16.47 billion a year earlier, but the picture was not quite so rosy in its Global Wealth and Investment Management business, where net income increased just 4 per cent to $2.40 billion year on year, on revenue up 6 per cent, supported by 11 per cent growth in asset management fees. For the fourth quarter of 2006, Global Wealth and Investment Management net income declined 1 per cent to $602 million from the previous year on revenue up 5 per cent to $1.99 billion. Within the division the Private Bank trod water, with revenue up 1 per cent over last year at $2.10 billion and net income of $553 million, down 1 per cent, whereas the mass market Premier Banking and Investments unit, for those with $100,000 plus to invest, had revenues of $2.88 billion, a 13 per cent increase over 2005 and net income of $948 million, a 17 per cent increase. Columbia investment management had revenue of $1.54 billion up 13 per cent and net income of $335 million up 15 per cent on 2005. Assets under management grew $60.58 billion - 13 per cent - in 2006, reflecting net inflows of $37.87 billion plus market appreciation. Last November, BoA launched unified managed accounts, packaging multiple investment products, such as separately managed accounts and mutual funds, into one account with one statement and for a single fee, aimed at individuals with between $250,000 and $1 million to invest. During the year, Bank of America restructured its service to high net worth clients in the US by increasing the number of its regional teams from four to eight and is in the process of acquiring US Trust, the private banking unit of Charles Schwab, for $3.3 billion in cash, so as to be in a better position to compete for high net worth clients. A spokesman for the bank told WealthBriefing that a process of integration, so that clients will experience a seamless change, will continue through Q2, with completion expected in Q3.