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Bank of America
has emerged as one of the nation’s most resilient banks, thanks to CEO Brian Moynihan’s “responsible growth” strategy. It informs everything, from how BofA evaluates new business opportunities to how it compensates employees.
The bank has pledged to pay its workers at least $25 an hour by 2025, making it a leader in the industry. It’s an effort that Moynihan says will make the bank stronger. “You have to be the best place for teammates to work…and our view is that we want people to have a career mind-set,” Moynihan says.
That sort of thinking also enhances the bank’s ability to weather downturns—and an economic storm could be coming. With many economists and business leaders forecasting a recession, Moynihan, 62, feels prepared. “Our company has plenty of capital and earnings power to go through it,” he says.
Bank of America passed the Federal Reserve’s stress test in June with high marks, and lifted its dividend by 5% after results were posted. Its current yield: 2.7%.
The stock is a top pick of Wells Fargo analyst Mike Mayo, who sees it as one of the prime beneficiaries of a rising interest-rate environment, as it will be able to reprice its loans. BofA learned tough lessons during the 2008-09 global financial crisis and strengthened its loan book thereafter, but Mayo views it as a leader beyond basic lending. The bank has been at the forefront of digital banking, with its intuitive mobile platform and digital personal assistant, Erica.
Write to Carleton English at [email protected]
Source: https://www.barrons.com/articles/bank-of-americas-brian-moynihan-barrons-top-ceos-2022-51657331810?siteid=yhoof2&yptr=yahoo