Bank Of America Corp.

Investment bank and financial services company Bank of America was founded in San Francisco in 1922 and was acquired in 1998 by NationsBank of Charlotte, where it is headquartered today. It is the second-largest banking institution in the United States, preceded only by JPMorgan Chase, and is the eighth-largest bank in the world.
In January 2009, BoA received $20 billion and a guarantee of $118 billion in potential losses from the U.S. government through the Troubled Asset Relief Program, in addition to the $25 billion it received in 2008 from TARP. Bank of America repaid the entire $45 billion it received in December 2009.
In 2018, Bank of America has a market cap of $313.5 billion and currently employs over 200,000 people.
Location: Charlotte, NC
Industry: Major International Banks
Sector: Financial Services
Traded on: NYSE
CEO: Brian Moynihan
Valuation: $449 billion
Latest Bank Of America Corp. News and Updates

How to Tell When a Text Message From Bank of America Is Real or a Scam

Anne Finucane Retiring as Bank of America’s Vice Chair

Bank of America Picks Three EV Supplier Stocks to Play the EV Theme

Ford Credit’s 2Q15 Profits Rise on Higher Volumes
We’ve seen the 2Q15 performance of Ford’s (F) automotive operations. Now, we’ll look at how Ford Credit contributed to Ford’s 2Q15 profits.

Morgan Stanley’s Capital Position Remains Strong
Since the financial crisis of 2009, there has been intense pressure on US banks to raise capital levels to meet minimum requirements.

How Would Rising Charge-Offs Impact Major Banks’ Earnings?
To make the most of growing consumer spending, major banks focused on their consumer banking business. They’re lending out more consumer loans.

Scale: A Boon or Bane for Apple and Warren Buffett?
For Apple, as Buffett noted during last year’s shareholder meeting, there aren’t a lot of acquisition opportunities that fit into its scale.

Why BTIG Is Bullish on PayPal
PayPal (PYPL) could have bright prospects despite the competitive threat it faces from Square and Apple in the online payment market, according to equity research firm BTIG.

Morgan Stanley’s Strong Revenue Model
Morgan Stanley charges fixed fees and performance fees for asset management services, products and services, and administration of accounts.

Must know: Stress tests and the likely timing for rate increases
On March 26, the U.S. Fed released bank stress test results indicating which banks can increase dividend payouts and share buybacks.

After a Lackluster 2Q15, Return on Equity Will Likely Improve
Wall Street analysts expect Goldman Sachs to post return on equity (or ROE) of 11.5% in 3Q15. In 3Q14, ROE for Goldman Sachs was 11.8%.

Financials Overview for the Week of June 26–30, 2017
Major banking stocks rose after the Fed approved huge payout plans. Wells Fargo (WFC) rose 2.7% and Citigroup (C) rose 2.8%.

GS Cuts More Jobs than It Did during the 2008 Financial Crisis
Goldman Sachs has been cutting costs in recent quarters. In 2016, 2,600 people may have lost their jobs at GS—the highest number since the financial crisis.

What New Developments Can You Expect from the Fed?
Potential new developments from the Fed include a suggestion by the subcommittee on communications that median values of policymakers’ projections be published.

5 Big Banks to Report Their Earnings this Week
This week, five of the top six commercial and investment banks will report their quarterly earnings.

JPMorgan’s Trading Revenues Fall 7% in 2Q15
JPMorgan’s revenues from fixed income markets declined 10% year-over-year in the second quarter of 2015. The drop excludes the impacts of one-off items.

How Global Weakness Drags down Wells Fargo’s Profitability in 4Q15
Two key elements gripping the US banking sector and Wells Fargo include the near-zero interest rate and global uncertainty, which have dampened earnings.

Did Banks’ Earnings Grow in 4Q15?
The Federal Deposit Insurance Corporation’s quarterly report on the health of the US banking industry said that 4Q15 bank earnings rose 11.9% year-over-year.

Why Wells Fargo’s Energy Loan Losses Could Rise in 2Q16
At Wells Fargo’s investor day presentation, chief financial officer John Shrewsberry warned investors of more losses on energy-related loans.

Is Citigroup’s Restructuring Exercise Benefiting the Company?
Citigroup’s CEO, Michael Corbat, continued his efforts to try to slim down the company’s operations and clean up its balance sheet in the second quarter.

What Goldman Sachs Thinks about Bank of America
Bank of America (BAC) is currently trading at $25.26. Its 52-week high is $25.80 and 52-week low is $12.05.

Can JPMorgan Beat Analysts Estimates in 2Q16?
In the past few quarters, JPMorgan has posted better-than-expected earnings and has topped revenue estimates.

Turn to Financials and Healthcare When Fears of Rate Hike Loom
With classic safe havens providing little protection, turn to financials and healthcare sectors for opportunities. Healthcare stocks usually hold up well in the run-up to a rate hike.

How Wells Fargo Creates Value for Shareholders
Wells Fargo has consistently performed well in stress tests. This performance has let the company increase its dividends annually.

What Impacted Wells Fargo’s First Quarter Earnings?
Wells Fargo’s first quarter earnings surpassed expectations but fell 5% YoY (year-over-year). The net interest income increased by 6% to $11.7 billion.

Bank of America’s Continued Efficiency Maintains Margins
Operating margins In 3Q17, Bank of America’s (BAC) non-interest expenses fell sequentially and YoY (year-over-year), reflecting strong operating efficiency. This fall was partially offset by continued investments in technology. The bank’s expenses fell to $13.1 billion in 3Q17, compared with $13.5 billion in 3Q16 and $13.7 billion in 2Q17. Commercial banks (XLF) are focusing on reducing operating spending, targeting huge investments in technology […]

How will the Federal Reserve go about policy normalization?
Monetary policy normalization refers to two aspects: the federal funds rate and the Federal Reserve’s balance sheet.

Citigroup’s Focus on Efficiency Could Boost Its Profitability
Citigroup’s 2Q15 efficiency ratio was 56% and was 66% in 3Q14. The bank has focused on efficiency through cost controls and exiting low-return segments that led to a lower efficiency ratio.

Why JPMorgan and Wells Fargo Are Trading at High Multiples
In spite of a rather weak performance, Wells Fargo (WFC) commands the highest premium due to its strong franchise, mortgage concentration, and high net interest margins.
Why Wells Fargo leads in loans
The bank has always focused on its bread and butter revenue-earning stream: loans. Over the years, Wells Fargo slowly realized its goal of achieving a strong market share in lending.

Will Dividends Please Wells Fargo’s Investors Worried about Scandals?
In June, the Federal Reserve approved Wells Fargo’s (WFC) capital plans after it found that the bank could keep lending in a severe economic downturn.

How Did Bank of America Perform on 2016 Stress Tests?
Bank of America boosted its dividends by 50% to $0.075 after it cleared the Fed’s 2016 stress tests.

Institutional Asset Managers Liquidate Exposure to Brazil ETFs
The 13F filings of major institutional asset managers for the second quarter of 2015 offer a gloomy picture for Brazil.

How Rate Hikes and Tax Rate Cuts Could Play Out for Bankers
The Fed is targeting one last rate hike in December 2017 to bring the federal funds rate from 1.25% to 1.50%.

Major Litigations End, but Bank of America Faces New Challenge
In March, the Fed issued a conditional non-objection to Bank of America’s capital plan. It must resubmit its plan and address certain weaknesses.

Bank of America’s Efficiency Could Improve to 63% in 2017
Bank of America (BAC) has put in place a strong expense control mechanism that has resulted in lower growth in operating expenses compared to revenues.

JPMorgan Chase Gained 4% after Its 1Q16 Earnings: Was It That Good?
On April 13, JPMorgan Chase reported 1Q16 earnings of $1.35 per share. It beat consensus estimates of $1.28. Its shares rallied 4.2% after the earnings beat.

Soaring high: Appaloosa initiates a position in American Airlines
Appaloosa Management’s top new buy last quarter was American Airlines Group (AAL), with a 2.22% position in the hedge fund’s U.S. long portfolio.

US Banking Sector: Key Trends and Outlook
Changes in technology have reshaped the banking sector. Banks are increasingly collaborating with fintech firms to improve their customer service.

XLF May Cross Its 100-Day Moving Average: Is It Time to Buy?
The Financial Select Sector SPDR ETF (XLF) attracts the most attention among financial ETFs in the US. 87% of the fund is composed of large-cap stocks.
Why Wells Fargo has the highest net interest margin
Maintaining a high net interest margin has always been part of Wells Fargo’s (WFC) strategy. Wells Fargo has consistently been better than the industry’s average net interest margin.

BofA Cut Boeing Target Price Due to Rising MAX Uncertainty
On Monday, Bank of America analyst Ronald Epstein lowered his target price on Boeing stock by $10 to $360. However, he maintained his “neutral” rating.

BlackRock Shares Its Views on Fixed-Income Strategy for 2016
BlackRock is not upbeat about fixed income in 2016. It’s more optimistic about stocks than it is about bonds, specifically European and Japanese equities.

AMFQX: More Than 60% Exposure to Derivative Securities
AMFQX is an alternative mutual fund that seeks to generate positive absolute returns with a low correlation to the returns of broad stock and bond markets.

Paul Singer Increased His Holdings in NXP Semiconductor in 3Q17
Paul Singer, the CEO of Elliott Management, increased his holdings in NXP Semiconductor (NXPI) in 3Q17, according to a recent 13F filing report.
Must-know: Is Wells Fargo making boring attractive for investors?
Wells Fargo’s (WFC) broad operation level strategy over the long run can be described by two words—slow and steady. It doesn’t take many risks. It’s stable and boring.

PLVVX: Weak Emerging Economies Lead to Poor Performance
The PIMCO RAE Low Volatility Plus Emerging Fund Class A (PLVVX) is an alternative mutual fund that mimics the long/short strategy to construct a portfolio with low volatility and high-income securities.

An Update on Fairholme’s Positions in Fannie Mae and Freddie Mac
Berkowitz believes that Fannie Mae and Freddie Mac entities are highly valuable and expects them to generate earnings of at least~$21 billion a year.

Financial ETF XLF Traded below Its Moving Averages on December 11
This series analyzes investors’ sentiments toward the financial sector in the major global regions: the United States, Europe, China, Japan, and the Emerging Market economies.

JPMorgan Chase Could Beat the Fourth-Quarter Estimates
JPMorgan Chase (JPM) is scheduled to announce its fourth-quarter financial results on January 15.

Morgan Stanley and Goldman have bigger bond exposure than Bank of America and Citi
Bond underwriting exposure could be risky for investment banking departments, as interest rates begin to rise and refinancing slows.
Must-read: Key takeaways for investors in the banking sector
The longer term outlook for Eurozone banks does look more positive than a year ago given reasons including the substantial deleveraging, capital raising by local banks and the European Central Bank (or ECB)’s recently announced ABS purchase program.

Why Stanley Druckenmiller Dissolved His Position in Barrick Gold
Druckenmiller has sold the firm’s position in Barrick Gold, which shows that he might have a strong outlook on the equity market.

Wells Fargo remains number one in low-cost deposits
Wells Fargo continues to remain a sector leader in raising low-cost deposits. It grew its noninterest deposits by nearly 7.0% compared to 4Q14.
Why Wells Fargo’s future goals will help it grow more
Management sets the vision for an organization. Wells Fargo’s vision is large, but it’s already halfway there. Wells Fargo is the largest bank in the U.S.—by market capitalization.

Will the Financial Sector Continue Its Rally Next Month?
The financial sector has had a strong performance so far in September 2017. The Financial Select Sector SPDR Fund (XLF), which tracks the performance of the financial sector, rose nearly 4.4% on a month-to-date basis.

Why Deutsche Bank Prefers Bank of America over J.P. Morgan
In this series, we’ll compare Bank of America and J.P. Morgan on the basis of their 2Q earnings, profitability, cost-cutting initiatives, and interest rate sensitivities.

Making Sense of PayPal’s Customer Metrics
As a result of its active customer base, PayPal reported that its total payment volume for 2Q17 rose 23% year-over-year to $106.4 billion.

High-Grade Bond Funds See Outflows in the Week Ending April 17
Investment-grade bond yields usually follow cues from the Treasuries market. With a fall in Treasury yields, investment-grade corporate bond yields also fell.

How IBM Could Monetize Its Food-Tracking Platform
IBM (IBM) has built a blockchain platform that provides real-time tracking of the food supply chain.

Here’s What Just Set FireEye Ablaze
Cybersecurity firm FireEye saw the value of its shares rise 14.5% last week after investment bank Goldman Sachs upgraded the stock to a “buy.”

Morgan Stanley’s Valuation and Target Prices
Morgan Stanley (MS) is trading at a forward PE ratio of 9.6x, which is ~16% lower than its five-year average PE ratio.
Overview: Why D.E. Shaw ups position in Liberty Global
D.E. Shaw upped its position in Liberty Global PLC (LBTYK) that accounted for 0.76% of the company’s U.S. long portfolio in 4Q13.

How Does Wells Fargo Compare on Energy Exposure?
Wells Fargo (WFC) seems secure when it comes to risks arising from energy-related loans. Wells Fargo’s energy loan portfolio of $17.8 billion made up 1.7% of the total loan portfolio in 1Q16.

Why Analysts Think Bank of America Is a Better Bet Than JPMorgan
Financial stocks have been rising after a better-than-expected 2Q16. Despite this, Citigroup has downgraded JPMorgan Chase to a “neutral” from a “buy.”

The Big Picture in US Equity Mutual Funds: November Rundown as of October
Investors need to keep a close watch on signs that indicate a “liftoff” in December and should be ready to rebalance their equity mutual funds accordingly.

Evans suggests using macroprudential tools for financial stability
An example of macroprudential tools are bank stress tests, conducted regularly by the U.S. Federal Reserve.

Banks Relying Heavily on Interest-Related Income Suffered
In the third quarter, banks that relied heavily on interest-based income suffered, reporting record-low net interest margins.
Why low funding cost is an advantage for Wells Fargo
If a bank is able to keep its cost of deposits low, it will have a competitive advantage. Wells Fargo has the lowest cost of deposits among its peers—despite having a very high deposit base.

Citigroup’s Profitability Boosted by Lower Expenses
In terms of profitability, Citigroup’s return on equity (ROE) fell to 8.0% from 9.1% in the previous quarter but rose sharply from the 5.3% reported in 3Q14. Return on assets fell to 0.9% from 1.1% in 2Q15.

Why Does Fixed Income Look Promising?
Under the current uncertain economic circumstances, investors searching for higher yield might turn to fixed income.

XLF Is above Its 20-Day Moving Average: Is This a Bullish Sign?
On February 19, the Financial Select Sector SPDR ETF (XLF) closed at $20.98. This is 10% and 6% below its 100-day and 50-day moving averages, respectively.

Understanding Goldman Sachs’s Segmental Earnings
Goldman Sachs ranked first in worldwide announced and completed mergers and acquisitions so far in 2015.
Why Wells Fargo focuses on non-interest income
Wells Fargo wants to maintain a balance between its interest income from loans and non-interest income. Non-interest income accounts for nearly 49% of Wells Fargo’s revenues.
Why cross-selling is part of Wells Fargo’s strategy
Wells Fargo’s (WFC) first, and possibly the most important, operational strategy is focusing on cross-selling. It’s the most important pillar of its operational strategy.

Understanding Banks’ Market and Reputational Risks
All banks face risks. Two key areas to understand are banks’ market risk and reputational risk. Here’s a summary of each type.

US Stock Indexes Rally with Japan’s Stimulus and Robust Jobs Data
The three US stock indexes that we review in this weekly series rose from July 5–12, 2016. Robust US jobs data boosted investor sentiment and eased the fear of an economic slowdown.

REITs Are Overvalued on a Price-to-Book Basis
REITs are the most overvalued sector in XLF on a price-to-book multiple basis. On average, REITs traded at a price-to-book multiple of 3.57x as of Monday, July 6.

US Industrial Sector Hit Hard by Currency Wars
The industrial sector accounts for about 12.5% of total US GDP. It’s also a main source of demand for goods and services in other sectors of the economy.

What Could Drive Citigroup Stock in 2019?
Citigroup (C) reported mixed fourth-quarter results on January 14. However, the stock is trending higher.
Why Wells Fargo is leveraging technology to cut costs
Online banking is the cheapest mode for servicing the customer in the long run. Online banking involves a one-time fixed cost. After that, the maintenance cost is very low.
Why Wells Fargo uses human resources as a strategic tool
Wells Fargo (WFC) believes that people are a competitive advantage source. Integrating sound human resource practices lies at the core of Wells Fargo’s strategy.

Markets Give a Thumbs Up to ‘True Merger of Equals’
Today, Sun Trust Banks and BB&T announced a merger that would create the sixth largest bank in the United States.

Low-cost deposit growth is a key strength for U.S. Bank
U.S. Bank does well in increasing its low-cost deposit base. In 4Q14, money market deposits grew the fastest at 19.7%—compared to 4Q13.

Bank of America Beats Q3 Earnings Estimates, Shares Fall on Revenue Miss

Why BMO Capital Markets Downgraded Western Digital
A few days back, BMO Capital Markets analyst Tim Long downgraded the rating on Western Digital (WDC) stock to “market perform” from “outperform.”

Is Bank of America Going Out of Business?

Bank of America and Wells Fargo: Comparing Interest Rate Exposure
Since Donald Trump’s presidential victory, Wall Street analysts have raised their forecasts for the major banks’ (XLF) net interest margins as they anticipate rising interest rates and economic growth.

Higher Provisions Weigh on Bank of America’s Q2 Results
Bank of America (NYSE:BAC) stock fell 3.1% in pre-market trading today after the company reported its second-quarter results.

What’s Expected for Bank of America’s Global Banking in 2018
Global banking’s key drivers Commercial banks (XLF) will likely see subdued credit offtake in the United States due to interest rate hikes and tax rate cuts allowing for higher operating cash flow. However, economies are buoyant, and interest rates are still lower outside the United States. Banks with global exposure could target higher consumer and commercial loans. Bank […]

Which Bank Could Expand Its Loan Book the Fastest in 2018?
Wells Fargo is following strict underwriting guidelines in an effort to reduce its historical provisions. It’s expected to follow this strategy into 2018.

Manufacturing Expands in March: A Positive Sign for Banks?
The manufacturing PMI (purchasing managers’ index) for March released on April 1, 2015. It decreased to 51.5% from February’s reading of 52.9%.

Will J.P. Morgan’s Investment Banking Continue to Grow in 2017?
J.P. Morgan (JPM) advises corporates on fundraising, strategic transactions across countries, and trading activities under its corporate and investment banking division.

US Stock Indexes Almost Flat after Release of FOMC Minutes
The three US equity stock indexes we review in this weekly series were mostly flat from August 11–18, 2016. This came after the minutes from the July 26–27 FOMC meeting.

Why Citigroup Shareholder Payouts Are Now Rising
Citigroup (C) has consistently enhanced payouts for shareholders in recent quarters as its operating performance improves.

Bank of America’s Asset Management Depends on This
BAC was managing ~$2.59 trillion on March 31, 2017, in client balances, which represents a growth of 5% on a YoY basis.

Wells Fargo’s Loan Growth Outpaces Bank of America and Peers
Wells Fargo (WFC) has the largest loan portfolio in the financial sector (XLF), anchored by its mortgage portfolio.

How Monetary Policy, Jackson Hole Could Impact Bank of America
Commercial bankers (XLF) in the United States have benefited from rising net interest margins due to rising rates over the past year and a half.

Why Deutsche Bank’s Trading Revenues Plunged in 2Q16
Revenues from Deutsche Bank’s Corporate and Investment banking unit fell by 12% in 2Q16. Revenues from its Global Markets business fell by 28%.

Citigroup or Bank of America: Which Is a Better Buy?
Citigroup and Bank of America have recovered well from the financial crisis. They have generated steady profits in the last few years and have strengthened their capital.