BAC's Investor Day Preview: Focus on Growth Strategy, Lagging Returns

Core Insights - Bank of America (BAC) will host its first Investor Day since 2011, featuring presentations from CEO Brian Moynihan and other executives to outline strategic priorities and growth opportunities [1][8] Group 1: Performance and Strategy - Management is expected to address concerns regarding BAC's underperformance compared to peers like JPMorgan, Wells Fargo, and Citigroup, with BAC shares lagging over the past five years [2] - Plans to accelerate loan growth, expand digital banking, and strengthen wealth management and investment banking operations are anticipated [2][8] - BAC aims to increase Return on Tangible Common Equity above the current 15% level in the medium term [2][8] Group 2: Financial Projections - Management expects sustained net interest income (NII) growth of 6-7% annually for 2025-2026, driven by improving loan demand and deposit stability amid declining interest rates [3] - The Zacks Consensus Estimate for BAC's earnings implies year-over-year growth of 14.9% for 2025 and 14.5% for 2026, with earnings estimates increasing to $3.77 and $4.31, respectively [9] Group 3: Valuation Analysis - Bank of America trades at a 12-month trailing price-to-tangible book (P/TB) ratio of 1.93X, below the industry average of 3.21X, and at a discount compared to JPMorgan's 3.11X and Wells Fargo's 2.09X, but is more expensive than Citigroup's 1.10X [5]