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Wednesday, June 19, 2024

“Responsible growth” is Moynihan’s BofA mantra

For 30 consecutive earnings calls, Bank of America CEO Brian Moynihan has repeated the term “responsible growth,” underlining his focus on profitable market share and profitable customers, according to a Bloomberg News profile.

The report notes Moynihan’s approach is “pretty radical thinking” because most big bank CEOs focus on growth. But Moynihan’s style has led to steady growth and helped BofA avoid some major problems such as the collapse of Archegoes Capital Management. At the same time, it has cost some potential revenue from business that rivals JPMorganChase, Citigroup and others have gathered.

But Moynihan’s consistent approach during his 12 years as CEO is impressing many investors including Warren Buffett, whose Berkshire Hathaway is the bank’s biggest shareholder. Wells Fargo banking analyst Mike Mayo, a longtime critic of the bank, now says the stock is likely to reach $55 in coming years. It closed Thursday at $32.39.

Moynihan is “President Joe Biden’s go-to banker when he wants to discuss the economy,” according to the story. And the bank is considered to be on Biden’s short list as a potential successor to Treasury Secretary Janet Yellen if she decides to step aside. Moynihan has said he plans to stick with BofA.

While BofA is based in Charlotte and is among the city’s biggest  employers, Moynihan has maintained his long-term residence in the Boston area.

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