Bank of America’s Growth Targets Fail to Impress Market
Bank of America unveiled medium-term financial targets during its first Investor Day in 14 years, aiming for 4% deposit growth, 5% loan growth, and 5%-7% net interest income CAGR. The bank also set ambitious goals of 12%+ EPS growth and 15%-18% ROTCE.
Investors responded tepidly, sending BAC shares down 3% on announcement day. The targets represent only marginal improvements over the bank's 2015-2024 framework, with analysts noting the projections rely on optimistic economic assumptions including sustained growth and no recession.