Bank of America outlines plans for earnings growth and AI in first investors day in years

Core Viewpoint - Bank of America (BAC) aims to achieve higher profits in the coming years, projecting a 12% annual growth in earnings per share over the next three to five years [1]. Financial Performance - Bank of America's stock has increased by 19% this year, outperforming the S&P 500 by 3 percentage points, but has lagged behind its five closest banking peers and over a five-year period [3]. - The bank's return on tangible common equity (ROTCE) is reported at 14% for the current year, with a target range set between 16% to 18% for the coming years [4][5]. Strategic Goals - The consumer banking division aims for $20 billion in profits, while the global wealth and investment management unit targets revenue growth at twice the rate of expenses over the next three to five years [5]. - The investment banking division plans to increase its market share of global dealmaking fees by 50 to 100 basis points and projects nearly doubling its full-year revenue (+42%) by 2030 [6]. Analyst Insights - Analysts view the growth targets as a continuation of recent trends, indicating a solid fundamental trajectory for Bank of America [7]. - Specific targets disclosed by each division suggest the potential for achieving a higher return measure [8].