Bloomberg Talks Wells Fargo Securities Head of US Large-Cap Bank Research Mike Mayo Talks Bank of America
Nov 3, 2025
In this engaging discussion, Mike Mayo, Head of U.S. large-cap bank research at Wells Fargo Securities and a leading bank analyst, shares insights on Bank of America's need for updated growth strategies. As he emphasizes the importance of clear return targets and actionable plans, he highlights areas where the bank has lagged, such as wealth management and card services. Mayo also discusses the significance of the upcoming Investor Day, where succession plans and a roadmap for growth will be unveiled, ensuring a timely and vital conversation for investors.
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From Risk-Averse To Opportunistic Growth
- Brian Moynihan built Bank of America into a steady, risk-averse franchise after the global financial crisis. Mike Mayo expects the bank to shift from risk-off to opportunistic risk-taking to boost growth and returns.
Ask For A Concrete Return Target
- Demand a clear target for returns and a concrete plan to reach it at the investor day. Mayo recommends a new return on tangible common equity target around 16%–18% and wants specifics on how to achieve it.
Deposits Are A Strength, Not The Finish Line
- Bank of America excels at deposit gathering and customer engagement, with a $1 trillion retail deposit base. The challenge is leveraging those relationships into higher-growth areas like wealth, cards, and trading.
