BofA CEO Brian Moynihan to Face Investors With the Worst Returns on Wall Street

Core Viewpoint - Bank of America is focusing on "responsible growth" and aims to improve its performance metrics, particularly in net interest income and return on tangible common equity, despite facing challenges compared to its peers [6][7][8]. Group 1: Financial Performance - Net interest income is projected to increase by 6% to 7% by the end of 2025, which is higher than the 3% expected at JPMorgan Chase [3]. - The bank's stock has returned over 40% since the Federal Reserve began raising interest rates in March 2022, but its main competitors have achieved annual returns exceeding 19% during the same period [13]. - Non-interest income at Bank of America has risen by 7.8%, while its largest rival has seen an 85.6% increase in the same timeframe [11]. Group 2: Strategic Shifts - The bank has shifted its focus from consumer credit cards and home-equity loans to commercial lending, with a significant increase in its commercial loan book, which has more than doubled since 2009 [15]. - Bank of America has reduced its credit-card loans from $161 billion in 2009 to $100 billion, with only 12% of that debt linked to borrowers with FICO scores of 660 or lower [16]. - The bank's investment decisions made in 2021, which involved long-dated Treasuries and mortgage bonds at low interest rates, are still impacting its performance negatively [4]. Group 3: Management and Future Outlook - CEO Brian Moynihan is under pressure to demonstrate growth and has called an investor day for the first time in nearly 15 years to address shareholder concerns [5][6]. - Analysts are looking for ambitious new targets for key metrics, particularly return on tangible common equity, which may be set in the high-teens percentage range [8]. - Executives are emphasizing the importance of managing expenses, which have increased by 4.5% in the first nine months of the year, compared to a 7% rise in revenue [10].