Bank of America Eyes Growth in U.S. Wealth Market 2025

Prime Highlights:

Bank of America is pushing to expand its wealth and investment management business to capture more of the growing U.S. wealth market.
The bank sees a major opportunity as trillions of dollars are expected to transfer between generations over the coming decades.

Key Facts:

Bank of America aims for 4%–5% net new asset growth in Merrill Wealth Management over the next three to five years.
The bank holds a 14% share of the ultra-high-net-worth market and covers 90% of U.S. wealth opportunities.

Background:

Bank of America is strengthening its wealth and investment management business as it aims to secure a bigger share of the fast-growing U.S. wealth market. At its first investment day since 2011, held on November 5 in Boston, executives outlined an aggressive strategy centered on stronger advisor recruitment, enhanced digital tools, and a deeper push into the ultra-high-net-worth segment.

During the event, CEO Brian Moynihan said the U.S. is entering a period of extraordinary financial change, with more than 20 million millionaires in the country and an estimated $84 trillion to $124 trillion expected to shift from Baby Boomers to younger generations and charities by the mid-2040s. He described the moment as a “huge opportunity” for the bank’s wealth business.

Bank of America is aiming for 4% to 5% net new asset growth in its Merrill Wealth Management arm over the next three to five years. The bank also expects revenue in the segment to grow nearly twice as fast as expenses, with a targeted return on allocated capital reaching 30%.

Katy Knox, president of Bank of America Private Bank, noted that the company already holds a 14% share of the ultra-high-net-worth market, supported by a national footprint that covers 90% of U.S. wealth opportunities. She added that growing the advisor team is a key priority for the bank.

Lindsay Hans, co-president of Merrill Wealth Management, said hiring and training new advisors is essential. She noted that the company already has around 15,000 advisors and strong development programs to support their growth. The bank is also turning to advanced technology, including AI-driven tools like Merrill’s Advisor Match, to help new advisors build stronger client relationships faster.

Bank of America also raised its medium-term return on tangible common equity target to 16%–18%, aligning with analyst expectations. Analysts, including KBW’s Christopher McGratty, reaffirmed their positive outlook on the bank’s long-term performance.