Bank of America (BAC) investor relations material

Economic and industry outlook

• U.S. GDP growth projections have fluctuated, currently at 2.2%, reflecting economic drag from oil and other factors.

• Consumer spending remains strong, with increases in gas, travel, and restaurant expenditures, supported by high employment and solid credit quality.

• Commercial activity is steady, with small and medium businesses maintaining employment and borrowing, despite uncertainties from global events and policy changes.

• Unemployment claims remain low, and employment stability is seen as the key driver for continued consumer strength.

• Businesses are cautious in hiring, adjusting to new technologies like AI, but overall economic fundamentals remain solid.

Competitive strategy and business growth

• Focus remains on maintaining competitiveness across eight business lines, monitoring both traditional and fintech disruptors.

• Core transaction accounts are central to strategy, with technology investments driving gains in payments and customer engagement.

• Expansion efforts include leveraging digital platforms, broadening rewards programs, and targeting customer acquisition across demographic segments.

• Leadership structure has evolved with new co-presidents to drive cross-business initiatives and talent development.

• Brand investment and employee engagement are prioritized to sustain market share and performance.

Financial performance and outlook

• Net interest income (NII) growth guidance raised to 6%-8%, driven by core deposit and loan growth, with repricing providing additional upside.

• Fee income is recovering, with consumer service fees and commercial GTS fees growing, while wealth management, investment banking, and trading remain strong.

• Loan growth is led by commercial businesses, with consumer lending stable and home equity showing signs of recovery.

• Card business strategy emphasizes prime lending, integrated rewards, and profitability over pure balance growth.

• Deposit franchise remains robust, with a focus on core transaction accounts and adaptability to new digital products and payment systems.