The COVID-19 pandemic has hit the pockets of millions of Americans hard, causing unemployment rates to skyrocket and driving thousands of small and medium-sized businesses out of business.
However, government measures aimed at mitigating the economic blow have lowered interest rates, driving a spectacular rebound in the stock market, which has resulted in the richest people in the country increasing their fortunes even more.
Banking industry specialists suggest that one of the healthiest assets today is credit products, especially, wealth management loans. “At the high-net-worth end of the spectrum, loan products have been very healthy, and that is being seen in companies like Morgan Stanley, where wealth management loan balances have risen by more than 30% year-over-year,” he told Reuters Devin Ryan, analista de JMP Securities.
Financial giants such as Morgan Stanley, JP Morgan and Bank of America this week reported double-digit growth in the balances and revenues of wealth management loans.
Specifically, Morgan Stanley’s wealth management loan balances reached $ 121 billion, 33% more than last year.
Bank of America’s Merrill Lynch Wealth Management asset management business reported revenue record $ 4.5 billion, 19% more than in 2020, while loan balances grew 10%, reaching 133,000 million dollars.
Likewise, JP Morgan’s wealth management business posted a revenue growth of 21%, with $ 4.3 billion, while average loans increased 20% compared to 2020.
According to a report of Boston Consulting Group, global financial wealth soared to a record $ 250 trillion in 2020, which has increased the demand for wealth managers, increased the value of assets under management, and made it more attractive for clients to borrow. In fact, generally speaking, the wealth management businesses of large US banks have performed excellently in the third quarter of 2021.