Bank of America CEO: Mid-sized clients not using lines of credit as actively as pre-pandemic

Market Trends & Loan Demand - Market conditions are near record highs, with increased risk appetite driving M&A and IPO activity [1] - Consumer spending is supported by strong credit quality and home equity, but is contingent on labor and wage growth [2] - Small businesses are profitable but concerned about labor availability [2][3] - Mid-sized clients are utilizing lines of credit less actively than pre-pandemic [3] - A 24% economic growth is expected next year, which should foster deal-making [5] Competitive Landscape - The banking sector faces competition from 4,000 entities, including non-banks, private equity, and fintech companies [8] - The competitive nature of the industry leads to consistent returns over time, even as return on assets decreases [13] Expense Management & Investment - The company manages expense growth primarily through headcount management, aiming for efficiency and reinvestment in client development and technology [9] - Headcount has remained relatively flat over the past 5-6 years, with the addition of 4,000 technology coders and 2,000 relationship managers [9] - The company's turnover rate is approximately 8% annually, representing 16,000 people [10] - Expense growth was approximately 4-45% year-over-year in 2024, and around 4% plus in the fourth quarter [11] - Factoring in the FDIC credit, fourth-quarter expense growth is closer to 25-3% [12] - The company is investing $42 billion annually in new technology initiatives, in addition to a $10 billion base [12]