Bank of America

Bank of America is a large financial services corporation that provides consumer, corporate, and investment banking products and services.

Categories

Financial and Banking  

#39

Rank

$236.91B

MarketCap US

US United States

Country

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 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.

In addition to its core banking operations, Bank of America is also involved in various initiatives to promote sustainability and social responsibility, and is widely recognized for its commitment to these issues. The bank is also focused on innovation and technology, and has introduced various tools and resources to help customers with their financial needs.

Bank of America is publicly traded and is listed on the New York Stock Exchange. It is widely followed by investors and analysts and is known for its strong financial performance and consistent growth. The bank is a member of various stock market indices, including the S&P 500 Index, and is considered one of the largest and most successful banks in the United States.


History

Bank of America was founded in San Francisco, California, in 1904 as the Bank of Italy by Amadeo Giannini. Giannini's vision was to create a bank that would serve the working-class people of San Francisco who were often overlooked by traditional banks. The bank was initially located in a converted saloon and was open seven days a week to accommodate the needs of its customers.

In the years that followed, the Bank of Italy expanded its reach by opening branches throughout California and eventually across the United States. In 1928, the bank was renamed Bank of America and continued to grow through a series of mergers and acquisitions. One of the most significant acquisitions was of the Los Angeles-based Bank of America, National Trust and Savings Association in 1958, which made Bank of America the largest bank in the United States. Throughout this period, the bank also played a key role in financing major infrastructure projects such as the Golden Gate Bridge and the Hoover Dam.

In the 1960s, Bank of America continued to expand and diversify its business. In 1968, it became the first bank to offer a shared network of automated teller machines (ATMs), allowing customers to access their accounts at any Bank of America location. It also established the first credit card program, BankAmericard, which later became Visa. In 1983, Bank of America introduced the first mobile banking service, allowing customers to access their accounts through their personal computers.

In the 1990s, Bank of America grew even larger through a series of mergers and acquisitions. In 1998, it acquired NationsBank, making it the largest bank in the United States in terms of deposits. It also expanded its international operations, acquiring banks in Canada, Europe, and Asia. However, the bank faced significant challenges in the late 1990s due to bad loans and a decline in profits. In 1998, it announced plans to lay off 10,000 employees and restructure its operations to improve efficiency. By the end of the decade, Bank of America had recovered and was once again profitable.

In the early 2000s, Bank of America continued to pursue acquisitions to expand its business. In 2003, it acquired FleetBoston Financial, making it the largest bank in the United States in terms of assets. It also expanded its presence in investment banking and wealth management, acquiring U.S. Trust in 2007. However, like many other banks, Bank of America was heavily impacted by the 2008 financial crisis. It received a $45 billion bailout from the U.S. government and was forced to sell off assets and cut jobs to stay afloat.

In the years since the financial crisis, Bank of America has focused on rebuilding its reputation and strengthening its financial position. It has invested heavily in technology, launching a mobile banking app and other digital services to better serve its customers. It has also made efforts to improve its corporate responsibility and sustainability practices, including setting targets to reduce greenhouse gas emissions and increase renewable energy use. As of 2021, Bank of America is one of the largest banks in the world, with over 66 million customers and operations in more than 35 countries.

 


Mission

Bank of America's mission statement 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 by 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 in a responsible and sustainable manner. 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 recognizes 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 personalized customer experience. Bank of America also recognizes 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

Andy Sieg (President, Merrill Lynch Wealth Management)

Anne Finucane (Co-Vice Chairman)

Thong M. Nguyen (Vice Chairman)

Bruce Thompson (Co-Vice Chairman)

Lauren Mogensen (Global General Counsel)

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)

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)


Recognition and Awards
Forbes World's Best Banks: Bank of America has been named to Forbes' list of the World's Best Banks for several years in a row, including in 2021. The list recognizes the top banks based on a survey of consumers around the world. Bloomberg Gender Equality Index: Bank of America has been named to the Bloomberg Gender Equality Index for several years in a row, recognizing the company's commitment to advancing gender equality in the workplace. Corporate Equality Index: Bank of America has received a perfect score on the Corporate Equality Index, a benchmarking tool for LGBT workplace equality, for several years in a row. Fortune Change the World List: Bank of America has been named to Fortune's Change the World List, which recognizes companies that are making a positive impact on society through their business activities. Human Rights Campaign Foundation: Bank of America has received the Human Rights Campaign Foundation's Corporate Equality Award for its commitment to LGBT equality and inclusion.

Products and Services

Consumer Banking: Consumer Banking, the largest division in the company, provides financial services to consumers and small businesses including, banking, investments, merchant services, and lending products including business loans, mortgages, and credit cards. It provides stockbroker services via Merrill Edge, a specific division for investment and related services (such as research and call center counsel) after Merrill Lynch became a subsidiary of Bank of America. The Consumer Banking organization includes over 4,600 retail financial centers and approximately 15,900 automated teller machines.

Global Banking: The Global Banking division provides banking services, including investment banking and lending products to businesses. It includes the businesses of Global Corporate Banking, Global Commercial Banking, Business Banking, and Global Investment Banking. The division represented 22% of the company's revenue in 2016.

Before Bank of America's acquisition of Merrill Lynch, the Global Corporate and Investment Banking (GCIB) business operated as Banc of America Securities LLC. The bank's investment banking activities operate under the Merrill Lynch subsidiary and provided mergers and acquisitions advisory, underwriting, capital markets, as well as sales & trading in fixed income and equities markets. Its strongest groups include Leveraged Finance, Syndicated Loans, and mortgage-backed securities. It also has one of the largest research teams on Wall Street. Bank of America Merrill Lynch is headquartered in New York City.

Global Wealth and Investment Management: The Global Wealth and Investment Management (GWIM) division manages the investment assets of institutions and individuals. It includes the businesses of Merrill Lynch Global Wealth Management and U.S. Trust and represented 21% of the company's total revenue in 2016. It is among the 10 largest U.S. wealth managers. It has over $2.5 trillion in client balances. GWIM has five primary lines of business: Premier Banking & Investments (including Bank of America Investment Services, Inc.), The Private Bank, Family Wealth Advisors, and Bank of America Specialist.

Global Markets: The Global Markets division offers services to institutional clients, including trading in financial securities. The division provides research and other services such as securities service, market maker, and risk management using derivatives. The division represented 19% of the company's total revenues in 2016.


References
Bank of America
Leadership team

Anne Finucane (Co-Vice Chairman)

Brian Moynihan (Chairman and CEO)

Bruce Thompson (Co-Vice Chairman)

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

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Sat Mar 02 2024
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