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BAC's Leadership Changes: How Will This Impact Its Future Strategy?

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Key Takeaways

  • Bank of America appointed Athanasia and DeMare as co-presidents, with Borthwick as EVP and CFO.
  • The reshuffle aims to strengthen execution, coordination and accountability across eight business lines.
  • Shares of Bank of America are up 13.9% in three months, with earnings growth projected for 2025 and 2026.

Bank of America (BAC - Free Report) recently announced major leadership changes. Dean Athanasia and Jim DeMare have been named as co-presidents, while Alastair Borthwick will serve as executive vice president and continue as chief financial officer (CFO).

These changes are being viewed as a serious form of succession planning, aimed at avoiding negative market or operational reactions to abrupt leadership changes. Brian Moynihan, chairman and CEO of Bank of America, has held his position for more than 15 years and has no plans to step down anytime soon. 

Leadership reshuffle positions Bank of America for sharper execution rather than a strategic reset, reinforcing Moynihan’s “Responsible Growth” playbook. New co-presidents Athanasia and DeMare bring complementary strengths, overseeing all eight business lines to drive tighter coordination, clearer accountability and faster pursuit of share gains. 

Athanasia’s track record in transforming consumer and small-business banking signals renewed focus on deposits, payments and digital engagement, while DeMare’s expanded remit points to deeper integration of Global Markets with the Corporate and Investment Bank to close gaps in capital markets and risk intermediation. Meanwhile, CFO Borthwick’s enhanced investor-facing role strengthens capital discipline and transparency. 

Together, these changes accelerate operational cadence and succession readiness, positioning BAC to improve competitiveness without departing from its disciplined growth framework.

Succession Planning of BAC’s Close Peers

Bank of America’s two close peers are JPMorgan (JPM - Free Report) and Citigroup (C - Free Report) . 

JPMorgan’s Jamie Dimon, the longest-tenured CEO among major U.S. banks, has led the firm for nearly two decades and has no immediate plans to step down like Moynihan. After a leadership reshuffle earlier this year, Marianne Lake, Troy Rohrbaugh and Doug Petno have emerged as the leading contenders for the position at JPMorgan, ensuring a visible and competitive bench.

In contrast, Citigroup’s Jane Fraser, who became CEO in March 2021, represents historic change, being the first woman to lead a major Wall Street bank. With Citigroup’s strategy centered on streamlining operations and doubling down on core businesses, succession questions appear less pressing in the near term.

BAC Stock’s Price Performance, Valuation & Estimates

Shares of Bank of America have risen 13.9% in the past three months. 

 

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From a valuation standpoint, Bank of America trades at a 12-month trailing price-to-tangible book (P/TB) of 1.87X, below the industry

 

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Moreover, the Zacks Consensus Estimate for Bank of America’s 2025 and 2026 earnings implies year-over-year growth of 12.2% and 16.2%, respectively. In the past month, earnings estimates for 2025 have remained unchanged at $3.68 and increased marginally to $4.28 for 2026.

 

Zacks Investment Research
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Bank of America currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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