BofA beats Citigroup as world’s largest bank

Bank of America Corp. on Tuesday surpassed Citigroup Inc. to become the world’s largest bank by market value.

Based on reported shares outstanding, Bank of America’s market capitalization totaled $243.71 billion as of Tuesday’s close, while Citigroup’s totaled $243.52 billion, Reuters data show.

Shares of Bank of America closed up 35 cents at $54.27, while Citigroup fell 33 cents to $49.56. New York-based Citigroup remains the largest U.S. bank by assets, with $1.75 trillion as of Sept. 30, followed by Bank of America, with $1.45 trillion.

Charlotte, N.C.-based Bank of America has benefited from acquisitions under Chief Executive Kenneth Lewis, including FleetBoston Financial Corp. in 2004 and credit card issuer MBNA Corp. in January.

In contrast, Citigroup Chief Executive Charles Prince has been busy addressing legal and ethical problems at the bank, and has been faulted by investors such as Saudi Prince Alwaleed bin Talal for not keeping costs down and failing to boost profit and revenue fast enough.

“Bank of America has been executing much better in its main business lines than Citigroup,” said Ralph Cole, who helps invest $2.5 billion at Ferguson Wellman Capital Management Inc. in Portland, Ore. “The wind should have been more at Citigroup’s back in several businesses, including investment banking and retail banking.”