- Bank of America’s 1Q trading revenue, excluding DVA, surpassed estimates at $5.18 billion against an estimated $5.02 billion.
- The FICC trading revenue, excluding DVA, was slightly over the estimated value at $3.31 billion against $3.3 billion.
- Equities trading revenue, also excluding DVA, outperforms estimates with $1.87 billion against the estimated $1.71 billion.
- The net interest income FTE of the bank was higher than expected at $14.19 billion against an estimated $13.95 billion.
- Wealth & investment management total revenue saw an increase with $5.59 billion, outperforming the estimation of $5.34 billion.
- The revenue net of interest expense surpassed estimates at $25.82 billion against the expected $25.43 billion.
- Provisions for credit losses were lower than expected at $1.32 billion against the estimate of $1.4 billion.
- Return on average equity slightly exceeded expectations at 9.35% against the expected 9.31%.
- Return on average assets met estimates at 0.83%.
- Return on average tangible common equity was slightly lower than expected at 12.7%, against an estimated 13.1%.
- Net interest yield was slightly above estimates at 1.99% against an expected 1.97%.
- The Basel III common equity Tier 1 ratio was slightly under the estimate at 13.4%, against an expected 13.5%.
- The Standardized CET1 ratio was in line with estimates at 11.8%.
- Compensation expenses were higher than anticipated at $10.20 billion, against the estimated $9.99 billion.
- Net charge-offs exceeded estimates at $1.50 billion against an expected $1.26 billion.
- Loan values were slightly under estimates at $1.05 trillion against an anticipated $1.06 trillion.
- Total deposits exceeded the estimates at $1.95 trillion, against an expected $1.93 trillion.
- The efficiency ratio was higher than estimates at 66.4%, against an expected 65%.
- Non-interest expenses were $17.24 billion, which exceeded the estimated $16.66 billion.
Bank Of America on Smartkarma
Analyst coverage of Bank of America on Smartkarma has been insightful, with Ethan Aw providing a bullish perspective on Aequitas ASEAN IPOs + Placements Broker Performance 2023. In his research report, Aw delves into the performance of brokers for ASEAN IPOs and placements in 2023, covering 18 deals above US$100m. Investors can find valuable insights in this detailed analysis by Aw, who offers a positive outlook on the sector.
On the contrary, Fern Wang adopts a bearish stance in her report titled “Investors Have Been Buried Their Head in The Sand on Billions of Unrealized HTM Losses.” Wang highlights the ballooning of unrealized HTM losses, particularly focusing on Bank of America among other U.S. banks. Her deep dive into the impact of these losses sheds light on a concerning trend that investors may have overlooked. Wang’s analysis serves as a cautionary reminder of the risks associated with unrealized losses in the current market environment.
A look at Bank Of America Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
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 utilizing Smartkarma Smart Scores have assessed Bank Of America with a promising long-term outlook based on its scores across various key factors. The company scored high in value, growth, and momentum, indicating positive indicators in these areas. These scores suggest that Bank Of America may have strong fundamentals and potential for growth and profitability in the future.
Despite scoring lower in resilience and dividend factors, the overall outlook for Bank Of America appears positive. The company’s diverse range of financial services, including banking, investing, asset management, mortgage lending, and investment banking, positions it well for long-term success. By leveraging its strengths in value, growth, and momentum, Bank Of America is poised to navigate challenges and capitalize on opportunities in the financial sector.
Summary of the description of the company:
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
