May 13 (Reuters) - Bank of America ( BAC ) 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 ), 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.