- Bank of America’s net interest income for Q3 was $13.97 billion, exceeding the estimate of $13.9 billion.
- Net interest income on a fully taxable equivalent basis came in at $14.11 billion, slightly above the projection of $14.07 billion.
- Trading revenue, excluding debt valuation adjustment (DVA), was $4.94 billion, beating the estimated $4.57 billion.
- FICC (Fixed Income, Currencies, and Commodities) trading revenue, excluding DVA, totaled $2.94 billion, surpassing the forecast of $2.77 billion.
- Equities trading revenue, excluding DVA, reached $2.00 billion, higher than the expected $1.81 billion.
- Wealth and investment management total revenue amounted to $5.76 billion, exceeding the forecast of $5.63 billion.
- Total revenue net of interest expense was $25.35 billion, slightly above the estimated $25.27 billion.
- The provision for credit losses was $1.54 billion, marginally above the estimate of $1.53 billion.
- Earnings per share (EPS) were 81 cents, a decrease from 90 cents year-over-year.
- Return on average equity was 9.44%, higher than the estimate of 9.01%.
- Return on average assets hit 0.83%, surpassing the expected 0.78%.
- Return on average tangible common equity was 12.8%, above the expected 12.2%.
- Net interest yield came in at 1.92%, slightly below the estimated 1.93%.
- The Basel III common equity Tier 1 ratio, fully phased-in under the advanced approach, was 13.5%, meeting expectations.
- The standardized CET1 ratio was 11.8%, slightly below the estimate of 11.9%.
- Compensation expenses totaled $9.92 billion, marginally above the estimate of $9.9 billion.
- Investment banking revenue was $1.40 billion, outperforming the estimated $1.24 billion.
- Advisory fees amounted to $387 million, surpassing the expected $341.8 million.
- Debt underwriting revenue reached $780 million, exceeding the forecast of $669 million.
- Equity underwriting revenue was $270 million, slightly above the estimated $258.4 million.
- Net charge-offs totaled $1.53 billion, close to the estimate of $1.5 billion.
- Total loans amounted to $1.08 trillion, slightly above the estimate of $1.07 trillion.
- Total deposits remained stable at $1.93 trillion, meeting expectations.
- The efficiency ratio stood at 65%.
- Non-interest expenses were $16.48 billion, slightly below the estimate of $16.49 billion.
- Bank of America’s CEO highlighted an increase in net interest income compared to the previous quarter.
- The CFO noted improvements in the balance sheet, strong liquidity, and a capital position well above regulatory requirements.
- A 100 basis-point parallel shift down in the interest rate yield curve is estimated to reduce net interest income by $2.7 billion over the next year.
- Analyst recommendations included 15 buys, 10 holds, and 0 sells for Bank of America stock.
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
Bank of America Corporation, a financial institution providing a range of banking, investing, and financial services, is showing a positive long-term outlook according to Smartkarma Smart Scores. With a strong value score of 4 and impressive momentum score of 4, the company’s overall outlook appears promising. The value score indicates the company’s financial attractiveness relative to its stock price, while the momentum score reflects the company’s ability to maintain positive price trends. Although the resilience score of 2 suggests some vulnerability to economic fluctuations, the growth and dividend scores of 3 demonstrate stability and potential for future expansion.
In summary, Bank of America Corporation is positioned well for the long term based on its Smartkarma Smart Scores. The company’s focus on value and momentum, coupled with its diverse range of financial services including banking, investing, and asset management, indicates a strong foundation for growth and stability. While challenges may exist in terms of resilience, the overall outlook remains positive, making Bank of America a noteworthy player in the financial sector.
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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