Strategic move: A customer uses an ATM at a BofA branch in San Francisco. The firm is looking to expand its emerging growth and regional coverage team. — AFP
NEW YORK: Bank of America Corp (BofA) is encouraging some bankers to consider new roles serving middle market clients as it seeks to beef up its business in the growing sector to meet client demand.
The firm is looking to expand its emerging growth and regional coverage (EGRC) team, and urging employees to apply for related positions, Matthew Koder, head of global corporate and investment banking, wrote in a memo this week seen by Bloomberg.
The EGRC group currently has more than 100 employees in 22 cities.
“Middle market companies represent a key component of the US economy and have also become a meaningful and growing part of the investment banking fee pool,” Koder wrote.
Charlotte, North-Carolina based Bank of America, is one of the few major Wall Street banks to avoid massive job cuts in recent months, instead choosing to move bankers into busier areas.
For years, the company has relied on attrition as a way to manage headcount.
The bank defines middle market companies as those with annual revenue of US$50mil (RM220.2mil) to US$2bil (RM8.8bil).
Chief executive officer Brian Moynihan had announced the shift in headcount strategy last month.
“We’re redeploying people across the franchise, including investment bankers to other parts of the franchise to help us in the middle market investment banking,” he said on Bloomberg Television.
While large corporate clients remain cautious, mid-size companies have become more active.
Bank of America firm has worked on 52 deals this year with an average size of US$1.5bil (RM6.6bil).
That compares with 69 deals by the same point in 2022, and an average size of US$2.8bil (RM12.3bil), according to data compiled by Bloomberg.
Included in the memo to investment bankers was a link to a list of job postings based on opportunities in specific locations and coverage areas in need of additional resources.
Positions range from analyst to managing director.
Working closely with Merrill Wealth Management and the private bank would be part of the initiative, Koder said.
“We believe our expanding EGRC business will offer excellent career development opportunities in a strategic growth area, and will provide invaluable exposure with a chance to learn and grow while helping to position the firm to succeed and grow market share,” Koder wrote.
The actions are meant to increase investment banking coverage of commercial banking clients and companies across all sectors, as well as broadening middle market private equity and other private capital providers, Koder said in the memo. —Bloomberg
