Bank of America to open more than 150 new branches by 2027

By Saeed Azhar and Prakhar Srivastava

May 13 (Reuters) - Bank of America BAC.N plans to open more than 150 new branches by the end of 2027, it said on Tuesday, as part of the lender's efforts to expand its physical presence across the United States.

The bank will open 40 new branches this year, with an additional 70 sites planned for 2026, it said.

Banks in the U.S. have continued to focus on their branch networks despite the surging popularity of digital banking, as they facilitate in-person meetings important for fostering customer relationships.

While more than 90% of BofA's client interactions take place through digital platforms, its branches can provide more personalized financial advice, it said.

The bank currently has a total of about 3,700 branches, or financial centers, across the country. That figure may come down a little by 2027 as it consolidates branches in more mature markets, said Holly O'Neill, president of consumer, retail and preferred banking at BofA.

"We are always evaluating new markets and where we want to go. We also find that the business that we grow digitally is accelerated in markets where we have a physical footprint," she said.

The lender has invested more than $5 billion in its financial center network over the past nine years. It opened a new flagship branch in New York in May, and plans to open four additional financial centers in Boise this July.

Last year, rival JPMorgan Chase JPM.N, which has similar growth ambitions, also unveiled its plans to add more than 500 new sites by 2027.

BofA's consumer banking unit contributed 33.8% of its net income in the first quarter, underlining the segment's significance to its overall earnings.

"The consumers still appear very sound. They're continuing to spend. We're seeing payment and spend behavior continue to grow in April, so that's a positive sign," O'Neill said.