Global Wealth and Investment Management (GWIM)
|Three Months Ended||Year Ended|
|(Dollars in millions)||December 31 2013||December 312012||December 31 2013||December 312012|
|Total revenue, net of interest expense, FTE basis||$||4,480||$||4,193||$||17,790||$||16,518|
|Provision for credit losses||26||112||56||266|
|Return on average allocated capital 1, 2||30.97||%||—||%||29.90||%||—||%|
|Return on average economic capital 1, 2||—||28.36||—||30.80|
|Average loans and leases||$||115,546||$||103,785||$||111,023||$||100,456|
|At period-end (dollars in billions)|
|Assets under management||$||821.4||$||698.1|
|Total client balances 3||2,366.4||2,151.6|
1 Effective January 1, 2013, the company revised, on a prospective basis, its methodology for allocating capital to the business segments. In connection with this change in methodology, the company updated the applicable terminology to allocated capital from economic capital as reported in prior periods. For reconciliation of allocated capital, refer to pages 23-25 of this press release.
2 Return on average allocated capital and return on average economic capital are non-GAAP financial measures. The company believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. For reconciliation to GAAP financial measures, refer to pages 23-25 of this press release.
3 Total client balances are defined as assets under management, assets in custody, client brokerage assets, client deposits and loans (including margin receivables).Business Highlights
- Pretax margin increased to 26.6 percent from 21.1 percent in the year-ago quarter.
- Asset management fees grew to $1.8 billion, up 15 percent from the year-ago quarter.
- Client balances increased 10 percent to a record $2.37 trillion, driven by higher market levels and net inflows.
- Period-end loan balances increased to a record $115.8 billion, up 9 percent from the year-ago quarter.
- Fourth-quarter 2013 long-term AUM flows of $9.4 billion were the 18th consecutive quarter of positive flows. For the full year, long-term AUM flows were a record $47.8 billion, up $21.4 billion or 81 percent from a year ago.
- Return on average allocated capital increased to 30.97 percent in the fourth quarter of 2013 from 28.68 percent in the third quarter of 2013.
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