During Bank of America’s investor day in 2011, then-newly appointed CEO Brian Moynihan presented a strategy to stabilize the bank after the 2008 financial crisis.
Fast forward fourteen years, and Moynihan, who is the longest-serving CEO on Wall Street, plans to discuss accelerating growth at the second-largest bank in the U.S. This time around, BofA is not the same as it was back then. Its stock has surged nearly four times since that last investor day, following a $45 billion bailout and the acquisition of Merrill Lynch during the crisis.
Nevertheless, BofA’s current valuation is significantly behind JPMorgan Chase’s, the largest U.S. bank overseen by Jamie Dimon. Back when Moynihan took leadership in 2010, BofA’s $135 billion market cap was close to JPMorgan’s $170 billion. Now, BofA’s valuation stands at less than half of JPMorgan’s approximately $850 billion, which is quite a disparity. Last year, BofA reported net income of $27.1 billion, a stark contrast to JPMorgan’s $58.5 billion.
BofA’s stock has increased fivefold so far in 2025, yet it still trails behind major competitors like JPMorgan, Citigroup, and Wells Fargo.
Financial institutions are under pressure to prove their ability to capitalize on emerging opportunities, especially as the Trump administration moves to ease financial regulations. Moynihan has hinted that he may step down by decade’s end.
“This is Bank of America 3.0,” remarked Wells Fargo analyst Mike Mayo. He noted that Bank of America 2.0 focused on recovering from the financial crisis, while the new phase aims for growth through measured risk-taking.
This investor day comes at a time when the bank’s shareholder base is changing. Warren Buffett, a significant supporter of BofA, has been notably reducing his stake, having sold down from a peak of 13% to about 8% now.
Some analysts express concern that the bank has become overly cautious in recent years. Though it’s large and globally present, its trading revenues haven’t kept pace with its competitors. Analysts believe there’s untapped potential in attracting affluent clients to its wealth management division.
Moynihan previously mentioned that big acquisitions were off the table after the fallout from the ill-fated Countrywide Financial deal. However, some analysts are now anticipating a return to strategic acquisitions as banks navigate regulatory changes.
Expectations are for BofA to reveal a plan to improve its return on tangible common equity, a crucial profitability indicator, which is currently around 15% in the third quarter. In comparison, rivals like JPMorgan and Wells Fargo have set medium-term targets between 17% and 18%.
During Wednesday’s meeting, BofA will also address some past challenges.
When deposits surged during the pandemic, BofA invested heavily in bonds while others favored cash. As a result, they have been working to cut back on these investments under the leadership of CFO Alastair Borthwick, who has been managing these efforts since taking the role in 2021. The bank faced paper losses of up to $100 billion in 2023, as rising interest rates from the Federal Reserve hit the bond market hard.
As of the third quarter of 2025, those unrealized losses amounted to $88 billion, but the bank has avoided actual losses by holding debt until maturity.
“The bond issue was a significant setback for Bank of America,” concluded Wells Fargo’s Mayo. “It’s still impacting earnings today. However, time may turn what was once a hindrance into a catalyst for future growth.”
As investors look ahead to who might succeed Moynihan, this meeting will also showcase potential future leaders. Recently, BofA shuffled its senior leadership by promoting Dean Athanasia and Jim Demer to co-presidents, while Borthwick also got an executive vice president title.
This trio may be in the running for the top position, but that depends on how long the 66-year-old Moynihan remains. He aims to stay on until the end of 2020, although some believe by then some top executives might be deemed too old for the job. Consequently, shareholders might consider other corporate executives attending the investor day as candidates for succession.
“I wouldn’t be surprised if the next CEO of Bank of America was someone who attended Investor Day,” said Barclays analyst Jason Goldberg. “It gives us a chance to see them engaged with the team.”
