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Bank of America

Bank of America is a large U.S. multinational bank offering services like banking, investment, and wealth management, with a strong global presence and history.

Categories

Financial and Banking  

#27

Rank

$358.71B

Marketcap

US United States

Country

Bank of America
Leadership team

Brian Moynihan (Chairman and CEO)

Raul Anaya (President of Business Banking, President - Greater Los Angeles)

Dean Athanasia (President, Regional Banking)

Catherine P. Bessant (Vice Chair)

Industries

Financial and Banking

Products/ Services
Banking, credit card, automobile loans, mortgage and home equity products
Number of Employees
1,000 - 20,000
Headquarters
Charlotte, North Carolina, United States
Established
1998
Company Type
Public Limited Company
Revenue
Above - 1B
Traded as
BAC
Social Media
Overview
Location
Summary

Bank of America Corporation is an American multinational investment bank and financial services company headquartered in Charlotte, North Carolina. It was formed through the merger of Bank of America and NationsBank in 1998, and has since grown into one of the largest and most successful banks in the United States.

Bank of America is part of the "Big Four" banks in the U.S., along with JPMorgan Chase, Citigroup, and Wells Fargo, and holds about 10% of all U.S. bank deposits. The bank's operations include commercial banking, wealth management, and investment banking services.

Bank of America offers a wide range of financial products and services, including consumer banking, credit cards, mortgage lending, wealth management, and investment banking. The bank serves individual customers, small and medium-sized businesses, corporations, and government entities.

Publicly traded on the New York Stock Exchange under the ticker symbol BAC, Bank of America is a component of the S&P 500 Index. As of November 2024, the bank's market capitalisation stands at approximately $351.87 billion, ranking it among the world's most valuable companies.

It has made significant efforts to enhance its practices, repay bailout funds from the Troubled Asset Relief Program (TARP), and adjust its business strategies. Recent fines in 2023 included $250 million for deceptive practices, such as opening accounts without customer consent and improper fee charging.

Bank of America is committed to responsible growth and community support, contributing to social, environmental, and economic progress. It maintains a strong market presence and is involved in partnerships such as sponsoring the FIFA World Cup 2026™ and golf events, indicating its continued focus on expanding its global reach and impact.

History

Bank of America Corporation, headquartered in Charlotte, North Carolina, was formed through the 1998 merger of NationsBank and BankAmerica. However, its history traces back to the 18th century, starting in 1784 when Massachusetts Bank was established, becoming the first federally chartered joint-stock owned bank in the United States. This bank later evolved into FleetBoston, acquired by Bank of America in 2004. Another significant branch of its history is linked to the Bank of Italy, which was founded in 1904 in San Francisco by Amadeo Pietro Giannini. The Bank of Italy was created to serve Italian immigrants who were often denied services by other banks, providing them with financial opportunities and security.

In 1928, Bank of Italy merged with the Bank of America, Los Angeles, and formally took the name Bank of America in 1930. Giannini played a key role in the bank’s growth, pioneering branch banking shortly after legislation allowed it in 1909. By 1929, Bank of America had 453 branches in California and had amassed assets worth over $1.4 billion. This expansion positioned it as one of the largest banking networks in the U.S.

The 1950s marked significant regulatory changes when the Clayton Antitrust Act and the Bank Holding Company Act of 1956 restricted banks from owning non-banking subsidiaries. This led to the separation of Bank of America and Transamerica Corporation. Although Bank of America's interstate activities were limited, legislative changes in the 1980s allowed it to resume expanding its domestic operations.

In 1983, Bank of America extended its reach by acquiring Seafirst Corporation in Seattle, which had faced financial issues due to bad loans. The bank expanded further by purchasing Security Pacific Corporation in 1992, which was then the largest bank merger in U.S. history. The merger included banks in California, Arizona, Oregon, and Washington. Later, in 1994, Bank of America acquired Continental Illinois National Bank and Trust Co., which had been bailed out by the federal government during a banking crisis in the 1980s.

The 1998 merger between NationsBank, led by Hugh McColl, and BankAmerica created the current Bank of America Corporation. This merger was the largest banking merger at the time and led to the establishment of a financial institution with combined assets of $570 billion and over 4,800 branches in 22 states. The merged company retained the Bank of America name, with McColl becoming the CEO.

In the early 2000s, the bank continued to grow through major acquisitions. In 2004, it acquired FleetBoston Financial for $47 billion, which expanded its reach on the East Coast and solidified its status as a major U.S. bank. In 2005, it purchased MBNA, a leading credit card issuer, for $35 billion, making Bank of America the largest credit card provider at that time.

A significant acquisition in 2008 was Countrywide Financial for $4.1 billion, which positioned the bank as a leader in mortgage lending and servicing. However, this acquisition brought legal and financial challenges due to subprime mortgage practices that contributed to the 2008 financial crisis. Later that year, Bank of America purchased Merrill Lynch for approximately $50 billion in an all-stock deal. This acquisition bolstered its investment banking and wealth management capabilities but also came with substantial risks and required assistance from the Troubled Asset Relief Program (TARP). Bank of America received $45 billion in federal bailout funds, which it repaid in full by December 2009.

The 2010s were marked by efforts to address the legal repercussions of the financial crisis. In 2014, Bank of America agreed to a $16.65 billion settlement with the U.S. Department of Justice over the sale of toxic mortgage-backed securities by Countrywide and Merrill Lynch, marking one of the largest corporate settlements in U.S. history. The bank also streamlined its operations, reducing non-core assets and focusing on its main banking, wealth management, and investment banking services.

Bank of America’s Global Wealth and Investment Management division manages significant client assets and is among the largest in the world. The bank’s expansion into digital banking became a key focus, with over 31 million active online users and millions of mobile users by 2018. The reduction of its physical branches aligned with increased digital banking usage.

The bank has made strategic investments in technology, improving digital services to enhance customer experience. In addition, it expanded its operations in key U.S. cities where it had previously lacked retail banking presence, such as Denver, Minneapolis, Indianapolis, and Pittsburgh, between 2015 and 2020.

In 2023, the Consumer Financial Protection Bureau imposed a $250 million penalty on Bank of America for deceptive practices, including charging excessive fees and opening accounts without customer consent. Despite these challenges, Bank of America remains a major global financial institution with over $3 trillion in assets, continuing to serve millions of customers worldwide.

Bank of America’s present strategy focuses on responsible growth, digital innovation, and community support, including contributions to housing, education, and economic development. The bank actively engages in global partnerships, such as its sponsorship of the 2026 FIFA World Cup. Under CEO Brian Moynihan, who has led since 2010, Bank of America continues to prioritise sustainable growth and strengthening its market position while addressing challenges and adapting to changing financial landscapes.

Mission

Bank of America's mission is to "make financial lives better through the power of every connection." The bank aims to provide its customers with access to financial products and services that help them achieve their goals, while also creating economic opportunity for individuals, businesses, and communities. Bank of America believes that connecting people with the resources they need to succeed, it can help build a more inclusive and sustainable economy.

In addition to serving its customers, Bank of America also aims to be a responsible corporate citizen. The bank has set ambitious targets for reducing its environmental impact, promoting diversity and inclusion, and supporting economic development in underserved communities. Through its philanthropic efforts, including the Bank of America Charitable Foundation, the company also supports a wide range of social and environmental causes. 

Vision

Bank of America's vision is to be the world's finest financial services company. The company's goal is to create value for its customers, employees, and shareholders by providing superior financial products and services, while also operating responsibly and sustainably. Bank of America aims to be a leader in the financial services industry, known for its innovative solutions and commitment to excellence.

As part of its vision, Bank of America is focused on meeting the changing needs of its customers. The company recognises that technology and digital innovation are transforming the way people manage their finances, and it is investing in new technologies and channels to provide a seamless and personalised customer experience. Bank of America also recognises its role in helping to address some of the world's biggest challenges, including climate change, inequality, and economic development. The company aims to be a leader in sustainable finance, promoting social and environmental responsibility throughout its business operations.

Key Team

Brian Moynihan (Chairman and CEO)

Raul Anaya (President of Business Banking, President - Greater Los Angeles)

Dean Athanasia (President, Regional Banking)

Aditya Bhasin (Chief Technology and Information Officer)

D. Steve Boland (Chief Administrative Officer)

Alastair Borthwick (Chief Financial Officer)

Sheri B. Bronstein (Chief Human Resources Officer)

Jim DeMareBiography (President, Global Markets)

Paul Donofrio (Vice Chair)

Geoffrey S. Greener (Chief Risk Officer)

Lindsay Hans (President, Merrill Wealth Management)

Katy Knox (President, Bank of America Private Bank)

Matthew Koder (President, Global Corporate and Investment Banking)

Aron Levine (President, Preferred Banking)

Bernard Mensah ( President of International, Bank of America; Chief Executive Officer, MLI)

Sharon Miller (President, Business Banking)

Lauren Mogensen ( Global General Counsel)

Thong M. Nguyen ( Vice Chairman)

Holly O’Neill (President, Retail Banking)

Eric A. Schimpf ( President, Merrill Wealth Management)

Tom Scrivener (Chief Operations Executive)

Wendy Stewart ( President, Global Commercial Banking)

Bruce R. Thompson (Vice Chair, Head of Enterprise Credit)

Recognition and Awards

In 2023, Euromoney Magazine recognised Bank of America as the World's Best Bank for Digital, Diversity and Inclusion, Financing, and Markets, highlighting its adaptability to market conditions and client needs. The bank was also named the World's Best Bank for Markets and Trade Finance in 2024, underscoring its market share and innovation. Bank of America earned a top score on the Disability Equality Index for the eighth consecutive year, reflecting its dedication to inclusivity.

In 2024, Bank of America received 19 awards from Euromoney Magazine, including North America's Best Digital Bank and Western Europe's Best Digital Bank, highlighting its digital leadership. The bank was also recognised as North America's Best Bank for Sustainable Finance, reflecting its commitment to environmental responsibility.

Furthermore, Bank of America was named North America's Best Bank for Transaction Services and North America's Best Bank for SMEs, demonstrating its dedication to serving diverse client needs.

Products and Services

Bank of America offers a wide range of financial products and services tailored to meet the diverse needs of individuals, businesses, and institutions.

Bank of America “Personal Banking”

  • Current Accounts: Customers can choose from various current accounts, each offering features like online banking, debit cards, and overdraft facilities. These accounts are designed to cater to different financial needs and preferences.
  • Savings Accounts: The bank provides savings accounts with competitive interest rates, helping customers grow their savings over time. Options include regular savings accounts and fixed-term deposits.
  • Credit Cards: A variety of credit cards are available, offering benefits such as cashback, travel rewards, and low-interest rates. These cards are designed to suit different spending habits and financial goals.
  • Mortgages: Bank of America offers mortgage solutions for homebuyers, including fixed-rate and adjustable-rate mortgages, catering to first-time buyers and those looking to refinance.
  • Auto Loans: Customers can obtain financing for new and used vehicles with competitive rates and flexible terms.
  • Investment Services: Through Merrill, a subsidiary, the bank provides investment options such as stocks, bonds, mutual funds, and retirement accounts, along with financial advice to help clients achieve their investment goals.
  • Online and Mobile Banking: Digital platforms allow customers to manage their accounts, pay bills, transfer funds, and deposit cheques remotely, offering convenience and accessibility.

Business Banking In Bank of America

  • Business Accounts: Tailored current and savings accounts are available for businesses of all sizes, providing essential banking services to manage finances effectively.
  • Loans and Credit: The bank offers various financing options, including business loans, lines of credit, and credit cards, to support business growth and operational needs.
  • Merchant Services: Solutions are provided to facilitate payment processing, including card acceptance and point-of-sale systems, helping businesses manage transactions efficiently.
  • Payroll Services: Assistance with payroll management ensures employees are paid accurately and on time, streamlining business operations.
  • Treasury Management: Services are designed to help businesses manage liquidity, payments, and financial risk, enhancing overall financial efficiency.

Wealth Management of Bank of America

  • Private Banking: For high-net-worth individuals, Bank of America offers personalised banking services, including customised lending solutions and exclusive banking products.
  • Investment Management: Clients receive tailored investment strategies, portfolio management, and access to a wide range of investment products to meet their financial objectives.
  • Trust and Estate Planning: The bank provides services to help clients plan for the future, including trust administration and estate planning, ensuring wealth is preserved and transferred according to clients' wishes.

Bank of America's Global Banking and Markets 

  • Corporate Banking: Services include lending, treasury management, and risk management solutions for large corporations, supporting their financial operations and growth strategies.
  • Investment Banking: The bank offers advisory services for mergers and acquisitions, capital raising, and strategic transactions, helping clients navigate complex financial landscapes.
  • Sales and Trading: Clients have access to global markets for trading equities, fixed income, currencies, and commodities, supported by research and market insights.
  • Research: Comprehensive research services provide clients with market analysis, economic forecasts, and investment recommendations to inform their financial decisions.

Specialised Services of Bank of America

  • Foreign Exchange: Bank of America offers foreign exchange services for individuals and businesses, facilitating international transactions and currency risk management.
  • Insurance: Through its subsidiaries, the bank provides various insurance products, including life, health, and property insurance, helping clients protect their assets and manage risk.
  • Student Banking: Specialised accounts and credit cards are available for students, offering benefits like no monthly maintenance fees and tools to help build credit responsibly.
References
Bank of America
Leadership team

Brian Moynihan (Chairman and CEO)

Raul Anaya (President of Business Banking, President - Greater Los Angeles)

Dean Athanasia (President, Regional Banking)

Catherine P. Bessant (Vice Chair)

Industries

Financial and Banking

Products/ Services
Banking, credit card, automobile loans, mortgage and home equity products
Number of Employees
1,000 - 20,000
Headquarters
Charlotte, North Carolina, United States
Established
1998
Company Type
Public Limited Company
Revenue
Above - 1B
Traded as
BAC
Social Media