- Bank of America’s net interest income FTE for Q3 was $14.11 billion, closely matching estimates of $14.07 billion.
- Trading revenue, excluding DVA, exceeded expectations at $4.94 billion, compared to the estimated $4.57 billion.
- FICC trading revenue excluding DVA reached $2.94 billion, surpassing the anticipated $2.77 billion.
- Equities trading revenue excluding DVA was $2.00 billion, higher than the estimate of $1.81 billion.
- Wealth and investment management’s total revenue was $5.76 billion, exceeding the estimate of $5.63 billion.
- Overall revenue net of interest expense was $25.35 billion, slightly above the estimated $25.27 billion.
- The provision for credit losses was marginally above expectations at $1.54 billion, against the estimated $1.53 billion.
- Return on average equity was recorded at 9.44%, surpassing the estimate of 9.01%.
- Return on average assets reached 0.83%, beating the anticipated 0.78%.
- Return on average tangible common equity was 12.8%, higher than the estimated 12.2%.
- The net interest yield was slightly below estimates at 1.92%, compared to 1.93%.
- The Basel III Common Equity Tier 1 ratio, fully phased-in, advanced approach, matched estimates at 13.5%.
- The standardized Common Equity Tier 1 (CET1) ratio was 11.8%, just under the estimated 11.9%.
- Compensation expenses were $9.92 billion, slightly above the estimate of $9.9 billion.
- Investment banking revenue came in at $1.40 billion, exceeding the expectation of $1.24 billion.
- Net charge-offs totaled $1.53 billion, marginally above the expected $1.5 billion.
- Total loans stood at $1.08 trillion, surpassing the estimate of $1.07 trillion.
- Total deposits were in line with estimates at $1.93 trillion.
- Non-interest expenses were close to estimates at $16.48 billion, compared to $16.49 billion estimated.
- The stock had 15 buy ratings, 10 hold ratings, and no sell ratings from analysts.
A look at Bank Of America Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have provided a comprehensive evaluation of Bank of America Corporation’s long-term outlook using the Smart Scores. Bank of America, a prominent player in the financial sector, has been rated highly in multiple key areas. With a strong Value score of 4, the company is believed to be priced attractively compared to its intrinsic value. Additionally, Bank of America has scored well in Momentum with a score of 4, indicating positive market trends and investor sentiment towards the company.
While the company demonstrates sound fundamental metrics, such as a Value score of 4 and respectable Dividend score of 3, areas like Resilience and Growth have been rated slightly lower at 2 and 3 respectively. These scores suggest that Bank of America may face challenges in terms of resilience to economic downturns and achieving significant growth compared to its peers. Overall, the company’s solid performance in value and momentum factors may bode well for its future prospects, even as it navigates through potential growth and resilience concerns.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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