Nov. 5 at 8:23 PM
Bank of America held its first investor day since 2011 in Boston, raising several long-term financial targets—but its stock fell 1.7% while the S&P 500 rose 0.7%.
The bank now targets a return on tangible common equity of 16%-18% over the next three to five years, up from 15.4% in the third quarter and prior guidance in the mid-teens. Analysts at UBS said the new target met expectations but noted investor concern over the timeline. By comparison, JPMorgan reported 20% in the same period.
Bank of America also aims to improve its efficiency ratio to 55%-59% from 62%, maintain net charge-offs at 0.5%-0.55%, and grow net interest income at a 5%-7% compound rate over the next five years.
The bank’s low-yielding
$500 billion mortgage portfolio, built during the pandemic at about 2%, has weighed on margins. It plans to reinvest
$450–
$490 billion of those assets at higher rates between 2026 and 2031, which Deutsche Bank called a “built-in earnings lift.”
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