BofA consumer investments surpass $500 billion as it eyes $1 trillion Investments from Bank of America's retail consumers have swelled to more than $500 billion in assets this year, and the company aspires to cross $1 trillion in five years. "If you look at our results, we have doubled every five years, so I'd like to think that we could do that again and achieve this within a five-year time period," Aron Levine, BofA's president of preferred banking, told Reuters. The second largest U.S. lender launched its consumer investment business in 2010.
Bank of America (BofA) has reported that its retail consumer investments have exceeded $500 billion this year, with a goal to reach $1 trillion in five years. BofA's president of preferred banking, Aron Levine, noted the company's history of doubling investments every five years. The consumer investment business, launched in 2010, allows clients to manage their investments with online tools and advisor support. BofA plans to open 165 branches by 2026, and nearly 33% of its investment accounts are held by Gen Z and millennials.
By Nupur Anand
NEW YORK (Reuters) - Investments from Bank of America's retail consumers have swelled to more than $500 billion in assets this year, and the company aspires to cross $1 trillion in five years.
"If you look at our results, we have doubled every five years, so I'd like to think that we could do that again and achieve this within a five-year time period," Aron Levine, BofA's president of preferred banking, told Reuters.
The second largest U.S. lender launched its consumer investment business in 2010. It allows so-called mass affluent clients to choose their own investments while offering online tools and in-person guidance from financial advisors.
While most consumers invest heavily in technology stocks and equities, others are also using mutual funds and exchange-traded funds to diversify their portfolios.
Levine echoed recent comments from other U.S. bank executives who expressed optimism about consumers' financial health and spending.
"Consumer savings have come down, but are still trending above the pre-pandemic levels, while debt has stabilized," he said. "Employment rates have been strong and there has been continued spending through the holidays."
The lender plans to open 165 U.S. branches by the end of 2026, which is also expected to boost investment assets.
Nearly 33% of BofA's consumer investment accounts are held by Gen Z and millennial clients, who have become more active in investing, followed by boomers and Gen X.
(Reporting by Nupur Anand in New York; editing by Lananh Nguyen and Chizu Nomiyama)
