BAML Flashcards
Headquarters
Charlotte, North Carolina
Employees
245.000
Countries
+40
Core Values
WE DELIVER: We deliver for our customers, clients and shareholders. We share a passion for serving the financial needs of people, companies and institutional investors.
TRUST: We trust in our team. We work together around the globe to deliver the full capabilities of our company to all of our constituents. We strive to be consistent and straightforward in our interactions.
EMPOWERMENT: We embrace the power of our people. We value our differences, understanding that diversity and inclusion are good for business and make our company stronger.
RESPONSIBILITY: We act responsibly. We are aware that our decisions and actions affect people’s lives every day. We hold ourselves accountable for the disciplined management of risk and for doing the right thing.
OPPORTUNITY: We promote opportunity. We are committed to helping each other achieve our potential in order to build a better future for the customers, clients, shareholders and the communities we serve.
Operating Principles:
Customer-driven: Our clear purpose is to help make financial lives better for the three groups of customers we serve – people, companies and institutional investors. We listen to what our customers want and connect across our company to deliver the solutions they need. We are focused on making customer interactions easier, our expertise more accessible, and our relationships more human. And, as we experience success, it is shared with those we serve, our communities and our shareholders.
Great place to work: Bank of America strives to be a workplace that attracts talented people; one in which our teammates work collaboratively to achieve results; in which employees act responsibly and are empowered to make the right decisions for our customers, clients and each other; in which individuals are respected and people of diverse backgrounds can succeed; in which every employee has the opportunity to achieve his or her full potential.
Manage risk: In effectively managing risk, we keep our company strong, help our customers and clients achieve their goals, and deliver consistent returns for our shareholders. We maintain strong, consistent risk management practices across all lines of business and geographies, and every employee is held accountable for managing risk.
Manage efficiency: Over the past three years, we have become a more streamlined and less complex company that is easier to do business with and to work for. We have narrowed our focus to concentrate on the businesses and services that matter most to our customers and clients. We are reducing expenses in non-core activities, and investing in other growth opportunities for the company.
Deliver for our shareholders: We can do more for our customers and clients than any other financial services company can. By making financial lives better for those we serve, we are driving growth and delivering the kind of returns our shareholders expect and deserve.
London Office
Bank of America Merrill Lynch (UK) Financial Center
2 King Edward Street London
STRENGTHS
Global leading franchises across businesses gives scale benefit: BofA is one of the world’s largest financial institutions, its got a leading commercial bank in the USA (80% of US population), leading wealth management company and is a world leader in corporate, investment banking and trading.
Favourable business mix diversification: The business revenue is very diversified in the different areas (GB, GWIM, GM, CRES…) and also when it comes to presence in different markets (USA (86%, EMEA (7,2%), Asia (4,2%), LAC (2%)…) à all this helps diversify risk.
Strong capital adequacy to cushion insolvency risks.
WEAKNESSES
Recent underperformance could constrain the company’s growth prospects
Instability to contain operating expenses impacting profits
OPPORTUNITIES
Growing banking sector in the US
Growing mobile banking market
Launch of innovative products and services: BOA is known for many initiatives that showcase its lead role in banking innovation - this can be an opportunity to expand and find new clients.
Innovative bank: October, Bank of America Merrill Lynch received top honours from The Banker magazine, being named Most Innovative Investment Bank of the Year 2013. Creative solutions for clients.
THREATS
Regulatory changes could increase compliance spending: There is a lot of regulation coming into place in the banking industry. For example, in the US we have the Dodd Frank Wall Street reform, more specifically the Volcker rule. In Europe we have got MIFID 2 and ring-fencing.
Weak economic growth prospects of the US economy: the growth prospects have gotten better this year, the fed tapers and the decreasing unemployment are raising the outlook that the world has on the US economy. That said, the prospects are still far from ideal.
Intense competition likely to erode market share and profitability: Being a huge global bank, BAML has many battlefronts - smaller banks are threatening to erode different areas of the business which right now are controlled by BAML.
· Regulation: one big challenge is the adaptation to the different regulatory measures being put into place. In the US we’ve got the Volcker Rule while in Europe there’s the MIFID II and ring fencing.
· Litigation: banks are being trialled and fined all the time so it definitely is a big risk. 17 billion fine.
· Changing industry
Main competitors corporation:
Wells Fargo, Citigroup, J.P. Morgan Chase & Co.
CEO & Chairman BofA Corp
Brian Moynihan
COO
Thomas Montag
CFO & BAML President
Bruce Thompson
Head IB EMEA
Christian Meissner
