As Bank of America (BofA) prepares to meet investors in Boston this November — its first such gathering since 2011 — CEO Brian Moynihan faces a familiar challenge:
how to turn stability into superior returns.
📈 The Performance Gap
BofA’s 15.4% ROTCE trails JPMorgan’s 20%, underscoring a widening gap between the U.S.’s top banks.
Analysts say BofA has been too cautious, missing opportunities in dealmaking and wealth management that rivals seized.
“It’s okay to have responsible growth,”
said Wells Fargo’s Mike Mayo.
“But you also need an opportunistic mindset for evaluating risk versus returns.”
💼 Wealth Management: The Untapped Engine
BofA’s wealth arm — including Merrill Lynch and its private bank — manages $4.6T, compared to JPMorgan’s $6.8T and Morgan Stanley’s $7T.
Despite a strong retail base ($947B in deposits, up 32% since 2019), net new asset growth remains slow.
Analysts argue BofA could better leverage its consumer network to expand its wealth platform, much like Morgan Stanley did through M&A.
🔄 Strategic Crossroads
Moynihan’s mantra of “responsible growth” rebuilt BofA after the 2008 crisis.
Now, investors want the next chapter — responsible ambition.
Targets are being set higher:
- Analysts at KBW and Wells Fargo see 16–18% ROTCE as achievable.
- A more active M&A posture in advisory and wealth management could be key.
👥 Leadership and Legacy
At 66, Moynihan plans to stay through the decade, but succession visibility is on investors’ minds.
UBS’s Erika Najarian noted,
“The bar is set by JPMorgan — where investors regularly engage with key management and succession feels seamless.”
💡 Closing Thought
For 15 years, Moynihan has made BofA safer.
Now investors want it bolder.
Because in modern banking, stability earns trust — but ambition drives returns.