“Record” levels of digital engagement, coupled with an improved economy and organic growth, allowed the Bank of America to end the year on a high note, the company’s chief executive reported on an earnings call Wednesday (Jan. 19).
““We earned a record $32 billion in 2021, with every business line solidly contributing,” CEO Brian Moynihan said, noting that the bank grew loans by $51 billion and added $100 billion in deposits during the fourth quarter.
What did digital engagement look like for Bank of America? According to the bank’s figures, 70% of households were actively using its digital platforms, while the bank saw 41.4 million active digital banking users – a 5% increase – making 2.7 billion logins.
Read more: Big Bank Earnings Show Consumer Spending’s Continued Resilience
The bank logged 1.5 million digital sales, a 46% increase, while its 15.8 million Zelle users, which now includes small businesses, sent and received 218 million transfers, a 39% and 53% increase, respectively, year over year.
Moynihan said Bank of America’s consumer operations added “millions” of new credit card accounts and close to a million net new checking accounts, while its wealth management services saw its strongest client acquisition numbers since before COVID-19.
“Investment banking had its best year ever, and global markets had its highest sales and trading revenue in a decade, led by record equities performance as we invested in the business,” Moynihan said.
Merrill Lynch, the bank’s wealth management arm, recorded record client balances of $3.2 trillion, up 14%, and record amount under investment balances of $1.3 trillion, a 17% increase. Meanwhile, 74% of checks deposited to these accounts were done so through automated channels, another new record.
Read more: BoA to End NSF Fees, Lower Overdraft Fee to $10
Last week, Bank of America announced it would make some major changes to its overdraft services, including plans to eliminate non-sufficient fund (NSF) fees next month and reduce overdraft fees from $35 to $10 starting in May.
Also in May, the bank will get rid of the transfer fee tied to its Balance Connect for overdraft protection. In February, it will remove the ability for clients to overdraw accounts at the ATM.
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