Why Bank of America Is at an 'Inflection Point'

Goldman Sachs analysts are convinced.

It’s been a brutal few years for the banking industry, which has struggled to grow revenue amid low interest rates and tougher regulations following the 2008 financial crisis.

But a team of Goldman Sachs analysts are now saying they believe Bank of America is poised to make a turnaround after meeting the bank’s CEO Brian Moynihan Wednesday. It must have been some talk because the analysts say it’s not just cost cutting that will raise the bank’s earnings—but the ever elusive revenue growth even in this low interest rate environment.

“We believe that Bank of America is on the cusp of an inflection in operating leverage as revenue growth and cost reductions appear set to occur concurrently,” a team of Goldman Sachs analysts led by Richard Ramsden wrote. “Management was optimistic about its ability to grow revenues despite a continued choppy macro environment and tepid capital markets.”