• Bank of America expects net interest income to rise between 5% and 7% annually over the next five years.
• BofA is targeting an over 12% annual increase in EPS.

Bank of America (BAC) has raised its medium-term profitability goal as it seeks to expand its market share and close the gap with rival JPMorgan.  

In a presentation uploaded to the company's website on Wednesday, Bank of America stated that it expects net interest income to rise between 5% and 7% annually over the next five years, supported by loan growth and asset repricing. Roughly $450 billion to $490 billion in low-yield assets are expected to mature and be replaced by higher-yielding investments, it noted.

ROTCE Target

The lender also set a new return on tangible common equity (ROTCE) target of 16% to 18%, up from its previous mid-teens forecast. It had reported a 15.4% ROTCE in the third quarter (Q3) of 2025, compared with JPMorgan's 20%.

BofA outlined plans to grow investment banking fees by 50 to 100 basis points (bps) over the next three to five years and increase earnings per share by more than 12% annually. On the trading front, the bank is targeting 9% of the industry revenue pool, up from the current 7.6%.

EPS Projection

It projects earnings per share to grow at least 12% annually and has also set a common equity Tier 1 (CET1) ratio target of about 10.5%, compared with 11.6% at the end of September, while maintaining strict cost control with an efficiency ratio goal of 55%to- 59%.

The country's second-largest bank is set to begin its Investor Day later on Wednesday, a first since 2011.

BAC stock was down 1.3% in premarket trade. The shares have gained more than 20% so far this year.

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