Bank of America to expand in four US states, closing gap with JPMorgan

BANK of America is adding consumer branches in four US states, it said on Tuesday (Jun 27), bringing its national footprint closer to rival JPMorgan.

Bank of America will open new financial centres in Nebraska, Wisconsin, Alabama and Louisiana as part of a four-year expansion across nine markets, including Louisville, Milwaukee and New Orleans.

The openings will give BofA a retail presence in 39 states, compared with JPMorgan, the largest US lender, which has branches in 49 states.

The two banks have been buoyed by resilient consumers and small businesses, while bringing in more income from clients’ interest payments as the Federal Reserve raised borrowing costs.

Consumer banking accounted for 38 per cent of BofA’s net income in the first quarter. The new branches aim to bring its services – which include banking, lending and brokerage – under one roof.

“By expanding our capabilities in these markets, we are able to better serve clients, and help drive local community growth,” CEO Brian Moynihan said in a statement.

BofA’s network has shrunk to 3,800 branches from 6,100 in the last decade, while its consumer deposits have almost doubled to US$1 trillion.

It is renovating locations with larger waiting areas, office spaces for client meetings and less prominent teller windows. That corresponds to a 50 per cent decline in foot traffic for transactions from 2019, versus a 90 per cent surge in appointments.

“We have put in place almost 30,000 bankers and specialists that help clients every day with their life priorities,” Aron Levine, its president of preferred banking, told Reuters.

Holly O’Neill, Bank of America’s president of retail banking, said last month that she expects good performance for the unit in the second quarter.

The company will report results on July 18. REUTERS