Bank of America Raises Profitability Target to Catch Up with Rivals

Bank of America has boosted its profitability target as it aims to enhance market share and compete with larger Wall Street banks. The bank's executives outlined strategies for growth and performance improvement at the first investor day since 2011, amid steady economic growth but potential labor market concerns.

Bank of America announced an increased profitability target on Wednesday, setting its sights on capturing more market share to compete with larger Wall Street firms.

During their investor day in Boston, executives revealed plans for growth, highlighting a new target for return on tangible common equity (ROTCE) of 16% to 18% from its mid-teens forecast.

Despite consumer credit stability and solid economic growth, BofA faces challenges in boosting investment banking fees and trading shares, while CEO succession plans hint at continued leadership under Brian Moynihan.

(With inputs from agencies.)