When Bank of America Corp. CEO Brian Moynihan says, “If the community is strong, we’re strong,” he is doing more than parroting the famous “what’s good for GM is good for the country” sentiment expressed more than 60 years ago.
This issue’s cover story Q&A with Mr. Moynihan delves into many areas of the bank’s current operations and its recovery from the Great Recession, but of particular interest is the bank’s focus on “impact investing.”
Deploying capital in ways that are not always expected to maximize return, the bank supports what Mr. Moynihan called “environmental, social and governance efforts,” whether through helping renewable-energy development or the building of affordable housing.
In addition to helping build stronger communities through lending – which in turn produces more consumer and business customers for the bank – Bank of America made roughly $200 million in charitable gifts across its national footprint this year, and according to Mr. Moynihan, expects that number to grow to $250 million in 2019.
The bank certainly has the funds to address community needs. Thanks in no small measure to the 2017 federal tax reform legislation, Bank of America expects net income in 2018 to total $26.2 billion, the highest number since well before the Great Recession.
And while a lot of that capital is finding its way to shareholders, as it should, the bank has greater flexibility to find new ways to support and build its host communities, something Mr. Moynihan and his management team clearly see as an important part of Bank of America’s business model.
