Core Insights - Bank of America (BAC) has announced a medium-term plan focused on sustainable growth, digital scale, cost discipline, and capital efficiency [1][2] Financial Targets - BAC aims for 5-7% annual growth in net interest income (NII), over 12% earnings growth, and a return on tangible common equity (ROTCE) of 16-18% over the next three to five years, while maintaining a Common Equity Tier 1 ratio of 10.5% [2][10] - The medium-term ROTCE target is higher than Citigroup's 10%-11% and comparable to JPMorgan's 17% [3] Growth Strategy - The bank's growth strategy emphasizes responsible growth, balancing risk with investments in technology, capital, and talent, with over $4 billion allocated annually to technology [4][7] - BAC plans to achieve an efficiency ratio of 55-59% and expects loans and deposits to grow at CAGRs of 5% and 4%, respectively [6][10] Digital and Network Expansion - BAC is expanding its financial centers, having opened 300 new centers since 2019, and plans to open additional centers in six new markets by 2028, contributing $18 billion in incremental deposits [16][17] - The bank's digital initiatives aim to enhance client relationships and productivity through AI and data-driven insights [5][19] Shareholder Returns - BAC has a solid liquidity profile with average global liquidity sources totaling $961 billion as of September 30, 2025, and has raised dividends by 8% to 28 cents per share [20][21] - The bank has announced a $40 billion share repurchase plan, reflecting its commitment to shareholder returns [22] Investment Banking Outlook - BAC's investment banking (IB) business is expected to see mid-single-digit CAGR in fees, with a focus on integrating corporate and IB services and leveraging AI for growth [23][24] Asset Quality Concerns - The asset quality of BAC has been weakening, with significant increases in provisions and net charge-offs in recent years, indicating potential challenges ahead [25][26] Stock Performance and Valuation - BAC shares have gained 21.2% this year but have underperformed compared to peers like Citigroup and JPMorgan [27] - The stock is trading at a price-to-tangible book (P/TB) ratio of 1.94X, below the industry average of 3.19X, suggesting it is undervalued [33][35]

Core Viewpoint - The recommendation is to maintain a long position in risk assets while shorting hyperscaler bonds and going long on zero-coupon bonds as a hedge against potential recession [1] Group 1 - The advice emphasizes staying long on risk assets for the time being [1] - There is a specific recommendation to short hyperscaler bonds, indicating a bearish outlook on this segment [1] - The strategy includes going long on zero-coupon bonds, which are seen as a protective measure against economic downturns [1]

Core Insights - Bank of America is focusing on using AI to augment work rather than replace employees, emphasizing efficiency gains and growth opportunities [1][2] - The bank's strategic growth plans include significant investments in technology, with a current annual spend of $13 billion, of which $4 billion is allocated for strategic growth [4] - Bank of America aims for a net interest income growth of 6% to 7% by 2025, with a compound annual growth rate target of 5% to 7% over the next five years [5] Technology and AI Integration - CEO Brian Moynihan stated that all 213,000 employees are gaining access to AI tools, including training on new coding methodologies [3] - The bank has made $118 billion in technology investments over the past decade, focusing on maximizing the impact of each dollar spent across the enterprise [4] Financial Performance and Growth Strategy - The bank's responsible growth strategy has led to organic growth by deepening relationships with existing clients and acquiring new ones [6] - Expense discipline has been maintained through digital operational improvements and AI, contributing to the bank's overall growth strategy [6]

Economic Discontent and Wage Growth - The election of Democratic socialist Zoran Mambdan Mamani in New York City reflects significant voter discontent with the current economic climate, highlighted by a high voter turnout [1] - Bank of America reported that wages for higher-income Americans increased by 3.7% in October, while middle-income wages rose by 2%, and lower-income wages only increased by 1%, marking the largest recorded gap [2][3] - The New York Fed's report indicated rising serious delinquency rates among younger demographics, further emphasizing economic strain [3] Consumer Sentiment and Spending Patterns - Lower-income Americans are experiencing a more rapid increase in prices compared to wealthier individuals, leading to greater pessimism about wage growth in the coming year [4] - Individuals earning $30,000 or less have become significantly more pessimistic about the economic outlook compared to those earning over $100,000, as evidenced by decreased visits to McDonald's from lower-income customers [5] Monetary Policy and Its Impact - The Federal Reserve's monetary policy, while a blunt instrument, may provide some relief to lower-income individuals, particularly those with credit card debt or first-time home buyers, although it may inadvertently raise housing prices [6][7] - Tariffs disproportionately affect lower-income Americans, who spend a larger share of their income on consumable goods, resulting in a higher percentage of their income being spent on tariffs compared to wealthier Americans [8]

I'm now joined by Lorraine Hutchinson, the senior retail analyst over at BFA Securities. Lorraine, this holiday shopping season could be one that is impacted more severely by tariffs. Just how important is this SCOTA's decision on the retail universe that you cover. >> The decision is really, really important.Uh it may be a little too late for the holiday season though. Uh most retailers right now have already received the product that they'll sell for holiday. So they have paid tariffs on those and they ha ...

Bank of America has picked new leaders for its UK investment banking as the Wall Street bank looks to deepen its footprint in the region https://t.co/amqnKuyGF5 ...

Bank of America (BAC) CEO Brian Moynihan pledged that the nation's second-largest bank will deliver higher profits in the years ahead during its first investor day in nearly 15 years. “There’s no cap to our ambition,” Moynihan said during a Q&A with analysts in Boston. Bank of America laid out those ambitions in a presentation on Wednesday morning and forecast its earnings per share would grow 12% annually over the next three to five years. The 66-year-old Moynihan, who has been BofA CEO since 2010, has ...

Core Insights - Bank of America is investing $13 billion in technology this year, with $4 billion allocated to core innovation projects, emphasizing technology as a strategic enabler for competitive advantage [4][10] - The bank's CEO highlighted that AI is embedded in daily operations, enhancing efficiency across various functions, including underwriting and compliance [5][8] - The bank's technology strategy is driven by client demand for seamless and integrated services, aiming to deepen customer relationships and reduce service costs [7][12] Technology Investment - Over the past decade, Bank of America has invested more than $100 billion in technology, focusing on creating new capabilities and improving customer experiences [4] - The bank's technology agenda includes building for scale and intelligence, allowing AI and automation to expand across all organizational areas [2][10] AI Implementation - AI is not experimental at Bank of America; it is actively used to personalize client experiences and streamline operations, contributing to efficiency gains [5][8] - The bank's AI initiatives are already benefiting back-office functions, allowing for productivity improvements without increasing headcount [9][10] Customer Engagement - Bank of America operates 3,600 financial centers, averaging $500 million in deposits, while digital platforms like the virtual assistant Erica enhance customer service availability [6] - The bank aims to provide holistic and integrated services to clients, whether individuals or corporations, fostering deeper relationships and low attrition rates [8][12] Business Performance - Consumer spending in Bank of America accounts rose 6% year-over-year in October, indicating strong deposit growth among retail and business clients [12] - The bank's position as a core part of customers' daily lives allows it to gain insights and serve them more effectively over time [12]

Transportation Secretary Duffy to Cut Flight Capacity 10% As Government Shutdown Becomes Longest Ever Last Updated: 6 hours ago Bank of America CEO Moynihan Will Give Mayor- Elect Mamdani 'Our Best Advice' CONCLUDED Customer Service By Rebecca Ungarino Brian Moynihan, the CEO of Bank of America, appeared at an investor day in Boston on Wednesday. (Anna Moneymaker/Getty Images) Bank of America CEO Brian Moynihan said he has not yet met with New York City Mayor-elect Zohran Mamdani but his firm will aim to "g ...

Bank of America held its first investor day in more than a decade to sell Wall Street on a story of higher profit and faster growth.The stock fell nearly 2%. https://t.co/iSBrbBRGyp ...