Areas in need of improvement include the corporate and investment bank, the private bank and Merrill Lynch, he said.
Investors are also closely watching when JPMorgan CEO Jamie Dimon will retire after heading the biggest U.S. bank for more than 19 years.
THREE-WAY RACE Mayo said that including Borthwick, it is now a three-way race to become the next BofA CEO.
“Dean and Jim will significantly increase the capacity, intensity, and expertise dedicated to our highest priorities, benefiting all.”
Athanasia earlier oversaw four of the company’s eight major lines of business, including retail banking, preferred banking, business banking and global commercial banking.
Written by Saeed Azhar, Ateev Bhandari, and Lananh Nguyen.
NEW YORK (Reuters) – On Friday, Bank of America named Jim DeMare and Dean Athanasia as co-presidents, the second-largest U.S. A. Potential successors to CEO Brian Moynihan are being prepared by the lender.
Alastair Borthwick was appointed executive vice president and chief financial officer.
In a letter distributed to the staff, Moynihan stated, “in their new roles as co-presidents, Dean and Jim will work with me to drive broad-ranging, strategic efforts that are central to our long-term performance.”.
Nonetheless, Moynihan, 65, reaffirmed his resolve to steer the business through the decade’s conclusion. The CEO is among the most seasoned executives in the sector. He led the bank’s recovery following the 2008 financial crisis after taking over in 2010 following a turbulent succession process.
Mike Mayo, a banking analyst at Wells Fargo, stated, “It’s nice to want to continue as the CEO for five more years, but there’s increasing pressure to improve performance and stock price.”.
“The corporate and investment bank, the private bank, and Merrill Lynch are areas that require improvement,” he said.
Shares of BofA are up 15% so far this year, while shares of larger rival JPMorgan Chase have increased 28%. So far this year, the SandP bank index has increased by 20%.
Investors are also eagerly awaiting Jamie Dimon’s retirement as CEO of JPMorgan, who led the largest U.S. S. bank for over 19 years.
The race is three-way.
According to Mayo, there are now three contenders for the position of BofA CEO, including Borthwick.
According to a letter from Moynihan, Athanasia, 59, and DeMare, 56, will assume overall responsibility for the company’s business lines, to which the individual business heads will submit reports.
“To everyone’s advantage, Dean and Jim will greatly expand the capacity, intensity, and expertise devoted to our top priorities. “.”.
Four of the company’s eight main business segments, including retail banking, preferred banking, business banking, and international commercial banking, were previously under Athanasia’s supervision.
With a revenue share of about 42% in the second quarter, the consumer division of BofA continues to be the largest.
The third quarter is expected to see DeMare’s markets division report its 14th consecutive quarter of revenue growth. In order to surpass quarterly profit projections, its second-quarter revenue increased by 15%.
Lananh Nguyen, Saeed Azhar, and Tatiana Bautzer in New York and Ateev Bhandari in Bengaluru reported; Alan Barona, Marguerita Choy, and Richard Chang edited.
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