Bank of America Sets Ambitious Profitability Goals to Boost Market Share

Bank of America has raised its profitability target as it seeks to increase market share and compete with larger Wall Street firms. The bank aims for a 16% to 18% return on tangible common equity in the coming years. Leadership changes and strategic growth plans are outlined at its investor day event.

Bank of America announced an ambitious profitability target this Wednesday, aiming to capture a greater market share and rival larger Wall Street firms. The bank disclosed these goals during its first investor day since 2011, held in Boston, where top executives outlined the company's strategic plans for the future.

The U.S. financial giant is now targeting a return on tangible common equity (ROTCE) of 16% to 18% in the medium term, an increase from its previous mid-teens forecast. In the third quarter, BofA achieved a ROTCE of 15.4%, still trailing behind JPMorgan's 20% in the same period, as figures reveal.

Additionally, BofA aims to boost its share of investment banking fees by 50 to 100 basis points over the next three to five years. The lender promoted Faiz Ahmad and Mike Joo as co-heads of global investment banking to drive these changes. Meanwhile, CEO Brian Moynihan plans to continue leading BofA through the decade with succession planning underway.

(With inputs from agencies.)