Bank of America Corp at Goldman Sachs U.S. Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Richard Ramsden - Goldman Sachs Group Inc - Analyst : Anyway, so let's start off with just your take on the macroeconomic backdrop. We've obviously just had the Fed just came out. But I'm curious about how you're thinking about the path for the economy next year, what you're seeing in terms of consumer and corporate engagement heading into 2026? And I think you have some of the best spending data and I think you do some of the best analytics around it. What have you seen over the fourth quarter? And what does that tell you about the outlook for next year?

Question: Richard Ramsden - Goldman Sachs Group Inc - Analyst : Then just from a consumer balance sheet standpoint, anything to note in terms of normalization of cash levels and how that looks relative to --

Question: Richard Ramsden - Goldman Sachs Group Inc - Analyst : Okay. So you just had the Investor Day, I think it was a month -- pretty much a month ago, right, just over a month ago. You set out both broader targets for the firm. You gave a very significant number of KPIs by business. From your perspective, what are the two or three main points coming out of the Investor Day that you want to reiterate? But the other thing I wanted to ask is, I know you spent time with investors since the Investor Day, what do you think is most underappreciated in terms of the message that you wanted to get across?

Question: Richard Ramsden - Goldman Sachs Group Inc - Analyst : Okay. So the plan does incorporate a significant pickup in growth rates and market shares in a number of businesses. So a couple of questions here. I mean, the first is, do you feel the current distribution footprint and platforms are set up for the growth from here? And then secondly, look, a lot of your peers do seem to be leaning into growth. Obviously, one of your peers announced a step-up in terms of strategic and investment spend yesterday. Can you talk a little bit about the competitive environment, what you've seen in the competitor environment so far this year and how you're expecting that to unfold next year?

Question: Richard Ramsden - Goldman Sachs Group Inc - Analyst : And then on the competitive environment, I mean, what have you actually seen? And what are you expecting? And then I guess, look, added to that, obviously, regional bank consolidation is obviously a big theme. Is that an opportunity for you because those organizations become inward focus as they integrate? Or is it a threat because they actually have more scale? How do you think about that?

Question: Richard Ramsden - Goldman Sachs Group Inc - Analyst : So let's talk about efficiency. It's everybody's favorite topic, and you gave a lot of data around this, and I think it's very encouraging. You talked about getting the efficiency ratio back below 60% near term into the high 50s, sustained operating leverage of 200 to 300 basis points. Talk us through what the efficiency agenda looks like from here, where you see the greatest opportunities. And obviously, look, AI is still a very, very dominant theme. I mean, do you think that AI will allow you to reduce the expense base in absolute terms, not necessarily in the next one to two years, but as you think out over the next three to five years?

Question: Richard Ramsden - Goldman Sachs Group Inc - Analyst : Okay. So 16% to 18% ROTC. I think you said you plan to get to the lower end in two years, the higher end in three years. How should we think about the improvement in returns from here? I mean, is it linear over that time period? Or is it more back-end loaded? So maybe talk a little bit about the nearer term versus the longer term

Question: Richard Ramsden - Goldman Sachs Group Inc - Analyst : Okay. So nearer term, can you just give us some high-level thoughts on the fourth quarter? Has anything changed since you last spoke either in terms of NII or trading? Is there anything we should be aware of in terms of credit and expenses? How is the fourth quarter shaping up?

Question: Richard Ramsden - Goldman Sachs Group Inc - Analyst : Okay. So you mentioned the credit picture. But anything that you've seen of note in terms of early delinquencies. And then I guess -- and I think the bigger picture question here is on the consumer side, in particular, asset quality has improved despite some of the weaker data from retailers and restaurants. Why do you think we're seeing this divergence between the banks and some of these other data points? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 8:00PM, BAC.N - Bank of America Corp at Goldman Sachs U.S. Financial Services Conference

Question: Richard Ramsden - Goldman Sachs Group Inc - Analyst : Would you expect it to decline from those levels on --

Question: Richard Ramsden - Goldman Sachs Group Inc - Analyst : Okay. So I'm going to talk about a couple of your growth initiatives in a second. But just on the loan growth side, can you just touch on what you're seeing on the commercial side and the commercial real estate side? Does seem that some of your peers are talking about that inflecting heading into next year? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 8:00PM, BAC.N - Bank of America Corp at Goldman Sachs U.S. Financial Services Conference And then the other thing I would be curious and getting your views on is OCC rescinded some of the rules around levered lending. Does that in any way impact how you think about the opportunity set in commercial lending over the next few years?

Question: Richard Ramsden - Goldman Sachs Group Inc - Analyst : And it just improves simplicity.

Question: Richard Ramsden - Goldman Sachs Group Inc - Analyst : Okay. So credit card and growth in the card business is one of the drivers to the improvement in the return of the consumer business. It does feel like that is a particularly competitive space. Obviously, you've had a number of refreshes, a number of people looking to grow that. What do you think is your key differentiator in terms of growing the card business from here?

Question: Richard Ramsden - Goldman Sachs Group Inc - Analyst : And then a similar question on the wealth business. I mean, you've obviously got great brand, great franchise, but it is a step-up in growth relative to the past. Again, what is it that you're going to do?

Question: Richard Ramsden - Goldman Sachs Group Inc - Analyst : Okay. So we've got a couple of minutes left. Let's talk about capital. You set out a 10.5% CET1 target. A couple of questions here. I mean, the first is, can you talk about the path to the 10.5% in terms of increased deployment versus capital returns to shareholders? Second, look, there's obviously more regulatory reform to come. So do you think that 10.5% could change after we get the Basel III endgame G-SIB recalibration? And then lastly, can you talk about your appetite for inorganic growth for acquisitions as a way of accelerating what I think is a really good organic growth story?