- Bank of America’s net interest income FTE stood at $13.86 billion, meeting the estimate of $13.81 billion.
- Trading revenue excluding DVA reached $4.68 billion, better than the estimate of $4.53 billion.
- Fixed Income, Currencies, and Commodities (FICC) trading revenue was $2.74 billion, slightly below the estimate of $2.8 billion.
- Equities trading revenue excluding DVA was $1.94 billion, beating the estimate of $1.73 billion.
- Wealth & investment management total revenue came in at $5.57 billion, close to the forecasted $5.58 billion.
- Total revenue net of interest expense was $25.38 billion, surpassing the $25.27 billion estimate.
- The provision for credit losses was $1.51 billion, nearly matching the estimate of $1.5 billion.
- Return on average equity (ROE) was 9.98%, higher than the estimated 9.57%.
- Return on average assets (ROA) was 0.85%, up from the estimated 0.82%.
- Return on average tangible common equity (ROTCE) was 13.6%, exceeding the estimate of 13.1%.
- Net interest yield stood at 1.93%, slightly under the estimate of 1.95%.
- The Basel III common equity Tier 1 (CET1) ratio, using the advanced approach, was 13.5%, meeting its estimate.
- The standardized CET1 ratio was 11.9%, in line with the estimated figure.
- Compensation expenses were $9.83 billion, slightly above the estimated $9.77 billion.
- Investment banking revenue reached $1.56 billion, beating the forecast of $1.45 billion.
- Net charge-offs stood at $1.53 billion, higher than the estimate of $1.45 billion.
- Loans totaled $1.06 trillion, in line with the estimate of $1.05 trillion.
- Total deposits were $1.91 trillion, slightly below the expected $1.93 trillion.
- Efficiency ratio was 63.9%, better than the estimated 64.2%.
- Non-interest expenses were $16.31 billion, in close alignment with the estimate of $16.3 billion.
- Analysts have 15 buy ratings, 13 hold ratings, and no sell ratings for Bank of America.
A look at Bank Of America Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
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 offering a range of services including banking, investing, and asset management, shows a positive long-term outlook based on Smartkarma Smart Scores. With solid scores in Value, Growth, and Momentum, the company demonstrates strength in its fundamental value, potential for growth, and market momentum. These factors indicate a promising future for Bank of America’s overall performance and competitiveness in the financial sector.
Although the company’s Resilience score is relatively lower, Bank of America’s overall Smart Scores suggest a favorable outlook for investors. Additionally, its Dividend score contributes to its attractiveness for income-oriented investors. Combining these factors, Bank of America appears well-positioned to deliver value and growth opportunities over the long term, making it a potentially rewarding investment choice in the financial industry.
Summary:
Bank of America Corporation accepts deposits and offers banking, investing, asset management, and other financial and risk-management products and services. The Company has a mortgage lending subsidiary, and an investment banking and securities brokerage subsidiary.
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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