Bank of America readies biggest investor pitch since 2011 as stock trails rivals

Core Viewpoint - Bank of America (BAC) aims to enhance its market valuation compared to competitors, with a significant investor day planned to outline its ambitions and growth strategies [1][2]. Group 1: Investor Day Significance - This marks Bank of America's first investor day in nearly 15 years, highlighting its importance and the management's desire to provide a comprehensive overview of the company [2]. - The event will feature insights from newly elevated senior executives, including co-presidents Dean Athanasia and Jim DeMare, and CFO Alastair Borthwick, who are seen as potential successors to CEO Brian Moynihan [3][4]. Group 2: Current Stock Performance - Despite a strong performance from big bank stocks, Bank of America's shares have underperformed, with a 22% increase in 2025, lagging behind Citigroup, which has seen a 44% rise [5]. - Over a five-year period, Bank of America's stock trades 17 percentage points below Citigroup, indicating a significant valuation gap [5]. Group 3: Management's Perspective - CFO Alastair Borthwick expressed dissatisfaction with the bank's current relative value during a recent conference, emphasizing the need for improvement [6]. - The upcoming investor day will focus on setting profitability targets and outlining strategies to achieve these goals, similar to initiatives taken by other major banks [7][8]. Group 4: Competitor Performance Metrics - Other large banks like JPMorgan Chase, Citigroup, and Wells Fargo have established profitability targets using return on tangible common equity (ROTCE), with JPMorgan aiming for a 17% return and Citigroup targeting 10% to 11% [8][9].