Bank of America CEO Sees Huge Growth Potential in US Wealth Business

Bank of America's CEO Sees Huge Opportunity in U.S. Wealth Business Bank of America's CEO, Brian Moynihan, revealed ambitious growth targets for the bank's wealth and investment management business during its investor day on November 5 in Boston. The banking giant aims to achieve 4 to 5 net new asset growth in Merrill Wealth Management over the next three to five years, with revenue growth nearly twice the rate of expenses. The target return on allocated capital for the entire segment is expected to rise to 30. According to Moynihan, there is a huge opportunity in the U.S. wealth business, which is a key area of focus for the bank. The wealth unit's revenue growth is expected to outpace expenses, with a target return on allocated capital of 30. This is a significant increase from the current return on allocated capital, which is not specified in the article. The bank's wealth and investment management business has been a key area of focus for Bank of America in recent years. The bank has been investing heavily in this segment, with a goal of becoming a leading player in the U.S. wealth management market. The bank's Merrill Wealth Management unit has been growing rapidly, with assets under management increasing by 15% in the past year. The U.S. wealth management market is a highly competitive and lucrative space, with many established players vying for market share. However, Bank of America's CEO believes that there is a huge opportunity for the bank to grow its wealth business, particularly in the ultra-high net worth segment. The bank's focus on this segment is a key part of its strategy to drive growth and increase its market share. Bank of America's wealth and investment management business is a significant contributor to the bank's overall revenue. In 2022, the bank's wealth management segment generated $14.4 billion in revenue, up 15% from the previous year. The bank's assets under management in this segment also increased by 15% to $2.3 trillion. The bank's focus on the U.S. wealth business is part of its broader strategy to drive growth and increase its market share. The bank has been investing heavily in digital transformation, with a goal of becoming a leading player in the digital banking space. The bank's wealth and investment management business is a key area of focus for this strategy, with a goal of becoming a leading player in the U.S. wealth management market. In conclusion, Bank of America's CEO sees a huge opportunity in the U.S. wealth business, with a focus on the ultra-high net worth segment. The bank's ambitious growth targets and investment in digital transformation are key parts of its strategy to drive growth and increase its market share in this highly competitive and lucrative space.