SKN | Bank of America Sees Significant Growth Potential in Merrill Banking Relationships Through Cross-Selling

Key Takeaways:

• Bank of America has substantial room to expand banking relationships across Merrill Wealth Management, with 33% of Merrill clients currently maintaining no banking relationship with the company.
• Its integrated platform offers mortgages, securities-based lending, customized credit facilities and deposit products, creating opportunities to deepen existing client relationships.
• Global Wealth & Investment Management revenue increased 13% year over year to $7.1 billion in the third quarter of 2026, highlighting the financial significance of the franchise.

Bank of America (NYSE: BAC) is seeking to capture more of its clients’ financial activity by expanding banking relationships within its Merrill Wealth Management franchise. With approximately 67% of Merrill clients already maintaining banking relationships, the remaining 33% represents a meaningful opportunity to increase lending and deposit penetration. For the bank, the strategy is not simply about acquiring additional customers, but generating greater value from relationships it has already established.

Bank of America Can Deepen Existing Merrill Relationships

Bank of America’s integrated banking and wealth management model provides a platform for connecting clients’ investment, borrowing and cash management requirements. Through Merrill, the company offers mortgages, securities-based lending, customized credit facilities and deposit products. Expanding the use of these services could increase the share of clients’ financial activities conducted within the bank’s ecosystem.

The existing advisor network is an important advantage. Financial advisors already maintain relationships with Merrill clients and can identify potential banking requirements as clients’ financial circumstances evolve. This creates opportunities for cross-selling without relying exclusively on expensive new-customer acquisition efforts. For high-net-worth households, coordinating investment portfolios, liquidity and credit facilities through one banking relationship may also simplify financial administration.

Wealth Management Growth Provides a Stronger Foundation

Bank of America’s third-quarter 2026 results demonstrate the scale of its wealth management franchise. Global Wealth & Investment Management (GWIM) client balances increased 9% year over year to $5.1 trillion, while average loans and leases rose 13% to $279 billion. Merrill and Private Bank collectively added approximately 5,000 net new relationships with at least $500,000 in assets during the quarter.

The segment generated revenue of $7.1 billion, an increase of 13% from the previous year, while net income reached $1.5 billion. Its pre-tax margin improved to 29% from 27% a year earlier. These results indicate that the franchise is already contributing meaningfully to the bank’s earnings. Greater banking penetration could provide another source of revenue growth by expanding lending activity, deposits and associated net interest income.

Cross-Selling Opportunities Come With Execution Risks

Despite the opportunity, converting wealth management relationships into broader banking partnerships will require careful execution. Competition from private banks, independent lenders and other financial institutions remains significant. Deposit pricing pressures and changes in interest rates may also influence the attractiveness and profitability of banking products.

Moreover, affluent clients frequently maintain relationships with several institutions to access specialized services, diversify counterparties and preserve flexibility. Merrill advisors may identify additional needs, but that does not guarantee clients will consolidate their banking arrangements with Bank of America. The bank must therefore demonstrate competitive financing terms, reliable service and consistent execution to strengthen its position.

Going forward, the key indicators will be changes in Merrill banking penetration, lending growth, deposit relationships and GWIM profitability. If Bank of America converts a larger share of its existing wealth management relationships into broader banking partnerships, it could improve revenue diversification and deepen client retention. The strategic opportunity is substantial, but its value will ultimately depend on how effectively the bank translates its extensive client network into sustainable earnings growth.

For a confidential discussion regarding your cross-border banking structure and global wealth management arrangements, contact our senior advisory team.