Big bank CEO WARNS of high inflation as he reveals what's troubling Americans

Core Viewpoint - Bank of America is relaunching its investor day after 15 years, focusing on growth, strategy, and advancements in technology and AI, following a strong earnings report with significant revenue and EPS growth [1][20]. Financial Performance - The company reported a third quarter earnings of $16 per share and over $28 billion in revenue, achieving a 31% EPS growth and 10-11% revenue growth with 5% expense growth, resulting in 600 basis points of operating leverage [3][4]. - Loan growth was reported at 9% and deposit growth at 4%, with strong capital markets activity across wealth management, trading, and investment banking [4][5]. Economic Assessment - The US consumer remains a powerful economic engine, with spending growth observed at approximately 5-5.5% in the last quarter, continuing to rise in October [6][7]. - Small business loan growth is in the high single digits, with strong credit quality and responsible borrowing practices noted [9][10]. Consumer Spending Trends - Despite inflation concerns, consumer spending in entertainment and travel has increased, with a 7% rise in spending on entertainment and a 10-15% increase in cruise spending compared to last year [14][15]. - Median income households are still experiencing growth, albeit at a slower rate than higher income households, indicating a disparity in economic recovery [12][13]. Investor Day Objectives - The upcoming investor day aims to present the company's growth story and showcase its strong performance, particularly in net interest income (NI), which is expected to grow at a rate faster than the industry average [20][23]. - The company has invested approximately $4 billion in technology initiatives, including AI, which is already operational and contributing to efficiency and customer interaction [25][29]. Leadership and Succession Planning - The investor day will also highlight the leadership team and succession planning, with a focus on developing talent within the organization to ensure a smooth transition in leadership when the time comes [32][34]. - The CEO emphasized the importance of preparing a capable successor who can lead the company effectively, considering the diverse skill sets required for the role [36][37].