The wealth management business, which includes Merrill Lynch and U.S. Trust, reported net income of $690 million for the quarter ended June 30, down $36 million from second quarter of 2014.

During that year, the bank hired 850 advisers, including 526 advisers at Merrill Lynch and 333 advisers at Merrill Edge, the brokerage unit that caters to less wealthy clients through Bank of America branches and online.

Bank-wide headcount for full-time employees declined by 7 percent, with some cuts made to support staff and infrastructure in the consumer banking sector, among others.

Bank of America Chief Executive Officer Brian Moynihan told analysts on a call that the recent hiring of a lot of younger, less-experienced advisers related to the training programs will pressure profits in the near term and reduce revenue generated per adviser from its current level of $1 million.

"You should expect our advisor count to go up and our productivity may come down per advisor," said Moynihan, calling it a great trade to grow the brokerages' sales force.

Merrill Lynch Wealth Management has said its advisers will pay renewed attention to clients with assets between $250,00 and $1 million. Big brokerages in recent years have largely ignored these clients, preferring to target clients with around $1 million in assets and more.

The wealth business's pre-tax margin climbed to 24 percent this quarter from 23 percent in the previous quarter, an "encouraging sign," Moynihan said. Additionally, the business can expect a boost next year with the expiration of retention packages paid to some Merrill Lynch advisers during Bank of America's purchase of the firm in 2009, he said.

The bank expects Merrill Edge to drive more clients to Merrill Lynch and U.S. Trust. Advisers at Edge referred 30,000 clients to the Global Wealth and Investment Management business in 2014, Bank of America spokeswoman Kristen Georgian said. The bank expects referrals to rise to 40,000 in 2015.

On average, Merrill Edge advisers sell $4 million of investment products annually, up 64 percent over the second quarter last year.

(This story has been corrected to show that sales of $4 million in investment products is on an annual basis, not per month)

(Reporting By Elizabeth Dilts; Editing by Chizu Nomiyama and David Gregorio)

By Elizabeth Dilts