Bank of America catching up with rival JPMorgan

Bank of America Corp (BofA) is close to reaching and overtaking its biggest competitor, JPMorgan Chase & Co., especially as its investment banking operations in Asia-Pacific continue to score big wins.

Bank of America has been undergoing a rebuilding process for over three years. The signs show that that process is beginning to bring the desired results, as the lender’s focus on big deals in Asia begins to yield.

According to lender’s Co-head of Investment Banking Peter Guenthardt, the North Carolina-headquartered lender is now placed right behind JP Morgan, after recording a surge in fees generated in Asia Pacific.

“We’re pretty much neck-and-neck,” he said, refusing to comment on the matter.

Matthew Koder, BofA’s Head of Global Corporate and Investment Banking, has a mission to raise the lender to the top three in industry rankings for every sector, region, and product. 

In line with that mission, Bank of America recorded the world’s third-highest revenue from investment banking fees, hitting an all-time high of US$2.1b. The bank’s investment banking arm now accounts for up to 15% of its operations in Asia.

An increase in deal-making at BofA has reduced a gap that was hundreds of millions of dollars wide three years ago. The lender is now only US$20m behind JPMorgan, which is currently ranked third for 2021 behind Morgan Stanley and Goldman Sachs.