Bank of America Corporation ($BAC) Earnings (Q3 FY22)

 Bank of America Corporation ($BAC) Earnings and Opinion:


Bank of America is a company in the Financial Services sector and operates in the Banks-Diversified industry. The company provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. Bank of America was founded in 1784 and is currently headquartered in Charlotte, North Carolina. Bank of America made its public debut in 1978. 

Bank of America Financial Results:

  • Revenue of $24.6B beating expectations of $23.62B
  • Sales & Trading Revenue of $4.1B beating expectations of $3.81B
  • Total Investment Banking Fees of $1.20B beating expectations of $1.17B
  • Adj Diluted EPS of $0.81 beating expectations of $0.78
Opinion:
Bank of America is currently trading higher in todays trading session. The company reported earnings before the market opened this morning. Some takeaways from the earnings report are as follows. Net interest income showed record numbers in the third quarter. This was credited to rate hikes and continued loan growth. Bank of America is offering higher interest rates on their accounts, this is allowing deposits to rise. The bank is seeing a strong organic client growth, which is credited to the 8% increase in revenue. It seems to be a common trend of banks beating NII with the high interest rates. Looking at the main financials, we can see that it beat in most categories. Revenue had a pretty solid beat, and EPS also showed a beat compared to estimates. As far as valuation goes, P/B sits at 1.11, which is a slight bit higher than competitors. P/E ratio is at 10.28, which is a little high compared to peers. P/S also sits high at 2.82. Bank of America has a solid Net Interest Margin (NIM) of 1.75%, which outpaces peers. Overall, the company seems to be close to fair value. In my opinion, Bank of America is one of the stocks that you can rely on to get you some sort of return in the long-term. It has been operating for so long, and it looks to be one of the top companies in the Financial Services sector. I am a current shareholder of this company, and I have a lot of faith in them. The stock has been hammered this year, and hopefully this earnings report can change the tide a little bit and bring them higher. The company saw a way to take advantage of the raising interest rates and have raised rates on accounts to try and expand their client base. You have to tip your cap to the management for turning this bad year around and turning the economic challenges into their benefit. I am long Bank of America $BAC.


*Information from Yahoo Finance and Bloomberg

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