On November 5, 2025, Bank of America held its first formal investor day in over a decade, marking a significant moment for the financial institution as it unveiled an ambitious set of upgraded financial targets and strategic priorities. The event signaled a clear shift in the bank’s approach, emphasizing faster growth, higher returns, and a stronger presence in large-scale capital markets.
One of the most notable announcements was the bank’s new target for return on tangible common equity, which has been raised to 16-18%, up from the previous mid-teens range. This new target reflects Bank of America’s ambition to deliver higher profitability and enhanced shareholder value in the coming years. Additionally, the bank set a more aggressive efficiency ratio goal of 55-59%, a substantial improvement from its current efficiency ratio of 62%. This move demonstrates the bank’s intent to streamline operations and reduce costs, further improving its overall financial performance.
Another key part of the bank’s growth strategy is its plan to grow net interest income at a compound annual growth rate (CAGR) of 5-7% from 2026 to 2030. This ambitious target indicates Bank of America’s belief in the strength of its core banking operations and its ability to capitalize on favorable market conditions in the coming years.
Bank of America also highlighted its wealth management arm, setting a target of 4-5% net new asset growth annually, alongside a plan to add $135-$150 billion in fee-generating assets each year. This move reflects the bank’s continued focus on expanding its wealth management business, tapping into the growing demand for financial advisory services and investment products.
In addition to its focus on wealth management, Bank of America’s investment banking division also outlined plans to increase its market share in mega-deals and equity capital markets over the next three to five years. The bank is positioning itself to take a more active role in the largest and most lucrative sectors of the capital markets, signaling its ambition to compete with top investment banks in high-stakes transactions.
Investment analysts noted that these announcements reflect a broader strategic shift at Bank of America, with the bank moving toward faster growth and more aggressive financial targets. The emphasis on higher returns and a more prominent role in large-scale capital markets highlights the institution’s commitment to enhancing its competitive edge, particularly in areas that have traditionally been dominated by a few major players.
For business readers, this investor day marked a strategic turning point for one of America’s largest financial institutions. Bank of America is clearly signaling its intention to adapt to evolving market conditions, focusing on areas where it sees the most potential for growth and profitability. The bank’s revamped targets and strategy shift set the stage for the next chapter in its long-term success, with an eye on capturing greater market share across key sectors of the financial industry. As the bank positions itself for the future, its investors and competitors alike will be closely watching how these ambitious goals unfold over the coming years.
