BofA officials will focus on growth plans at investor day
BAC Bank of America’s top executives will take center stage at Wednesday’s investor day in Boston, with analysts expecting them to outline plans to improve performance and narrow the gap with rival JPMorgan Chase JPM.
Investors in Bank of America will also be looking for signals about succession plans, as its longtime CEO, Brian Moynihan, completes nearly 16 years at the helm of the United States’ second-largest bank.
For the banking sector, investor day came as the US government shutdown entered its fifth week, slowing the release of economic data used to gauge the economy’s health.
Investors are also watching for signs of weakening consumer sentiment, pressure on credit markets and a weakening labor market.
Here’s a rundown of bank officials and the businesses they oversee:
BRIAN MOYNIHAN, CHAIRMAN AND CEO
Moynihan took over the helm in January 2010, steering it through the impact of the global financial crisis. At that time, the bank had reported two quarterly losses for the year. In its most recent earnings quarter, BofA posted a profit of $8.5 billion and revenue of $28.1 billion.
One of the most influential voices on Wall Street, Moynihan was appointed chairman of the BofA board in October 2014.
Analysts say it is difficult to predict who will replace Moynihan, amid a three-way race between the bank’s two vice presidents and its chief financial officer.
Moynihan has expressed his commitment to leading the company through the end of the decade.
Prior to becoming CEO, he served on all of its largest businesses, gaining a broad understanding of their operations.
ALASTAIR BORTHWICK, EXECUTIVE VICE PRESIDENT AND CFO
Borthwick became Bank of America’s chief financial officer in 2021. He was previously president of global commercial banking and co-head of global capital markets.
He joined the lender in 2005 and previously spent 12 years at Wall Street rival Goldman Sachs GS.
Analysts have previously named Borthwick as a potential successor to Moynihan.
DEAN ATHANASIA, CO-PRESIDENT
BofA named Dean Athanasia and Jim DeMare as co-presidents in September in a sign that the bank was preparing potential successors to Moynihan.
“In their new roles as vice presidents, Dean and Jim will work with me to drive broad, strategic efforts critical to our long-term performance,” Moynihan said in a letter distributed to employees at the time.
Prior to her promotion, Athanasia oversaw major businesses including consumer, discretionary banking, business banking and global commercial banking.
JIM DEMARE, CO-PRESIDENT
DeMare most recently led the bank’s global markets division, which posted third-quarter profit of $1.6 billion, its 14th consecutive quarter of year-over-year growth.
Athanasia and DeMare together oversee all business lines across the company’s four segments: consumer, wealth management, global banking and global markets.
DeMare has spent most of his career in fixed income. He previously worked at Salomon Brothers, the legendary bond shop featured in Michael Lewis’ classic 1989 book, “Liar’s Poker.”
HOLLY O’NEILL, PRESIDENT, CONSUMER, RETAIL AND CHOICE
Holly O’Neill joined BofA in 1996 and now leads retail and preferred banking.
Bank of America’s consumer banking unit posted third-quarter profit of $3.4 billion, up 28% from a year ago. This accounts for about 40% of BofA’s overall profits.
O’Neill oversees 69 million clients through approximately 3,600 BofA financial centers and 15,000 ATMs and other client sites.
The lender has expanded its branch network and enhanced digital services to strengthen the consumer experience in both physical and online channels.
LINDSAY HANS, PRESIDENT, MERRILL WEALTH MANAGEMENT
Lindsay Hans is president and co-head of Merrill Wealth Management along with co-head Eric Schimpf. He oversees more than 25,000 employees who provide investment and wealth management services to individuals and businesses in the US.
They also lead the bank’s investment solutions group, which includes the chief investment officer.
BofA’s global investment and wealth management business posted third-quarter profit of $1.3 billion. The amount accounts for about 15% of the lender’s overall quarterly profit.
ERIC SCHIMPF, PRESIDENT, MERRILL WEALTH MANAGEMENT
Schimpf began his career at Merrill Wealth Management as a financial advisor in 1994 and previously served as an executive in the Pacific Coast division, co-head of the firm’s advisor development program, and an executive in the Southeast.
MATTHEW KODER, PRESIDENT, GLOBAL CORPORATE BANKING & INVESTMENT
Koder is president of global corporate and investment banking. BofA’s global banking business posted a profit of $2.1 billion in the third quarter, with total investment banking fees jumping 43%. It is ranked third in the investment banking league table, according to analytics firm Dealogic.
Koder joined BofA in 2011 as head of global corporate and investment banking for Asia Pacific.
He previously spent eight years at UBS in Hong Kong and London and also served as a member of the Swiss lender’s global management committee.
Source: Reuters
