During a presentation at the Financial Services Conference, Bank of America's CEO, Brian Moynihan, conveyed a more positive outlook on the company's Global Wealth division. Moynihan, who previously identified the division as the "least efficient" within the company, now characterizes it as "very profitable" and "pretty efficient."

According to AdvisorHub, Moynihan acknowledged that there is still room for improvement in increasing profitability within the wealth management sector. He highlighted that approximately 50 percent of the unit's revenue is absorbed by advisor compensation. However, rather than reducing advisor pay, which he considers an industry standard, Moynihan emphasized the importance of enhancing scale by adding advisors, promoting cross-selling, and advancing digitization efforts.

According to Moynihan, the key to boosting profitability lies in expanding capabilities, increasing scale, and enabling advisors to serve more clients effectively through digital enhancements.

AdvisorHub also reported that Moynihan reiterated the firm's focus on cross-selling financial products to wealthy clients across Bank of America's offerings, including home loans and checking accounts. He highlighted the effectiveness of centralized capabilities, such as home loans, in generating revenue without significant additional expenses.

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