Seeking Alpha

Ex-litigation, BofA beats forecasts

  • Adjusted EPS of $0.35 compares to estimates of $0.27, with the $6B settlement weighing on the headline EPS loss of $0.05.
  • Net interest income of $10.3B fell 5% Y/Y, with NIM of 2.36% up six basis points. Noninterest income of $12.5B is flat from last year, with lower mortgage banking income and trading profits offset by increases in investment and brokerage income, equity investment income and gains on the sale of debt securities.
  • Provision for credit losses of $1B is down 41%. Net charge-offs of $1.4B down 45%, with net charge-off ratio of 0.62% comparing to 1.14% a year ago. Reserve release of $379M vs. $804M a year ago.
  • Noninterest expense of $22.2B is up from $19.5B a year ago, with higher mortgage litigation costs ($6B vs. $2.2B) partly offset by cuts in Legacy Assets and Servicing (LAS). Excluding litigation, expenses fell $1.2B Y/Y.
  • Other highlights: Mobile banking customers up 19% to 15M - more than 10% of deposits now done through mobile; first mortgage originations fell 65% Y/Y, with production revenue of $273M comparing to $815M a year ago; Wealth Management net income of $729M vs. $721M a year ago.
  • Basel III Common equity ratio of 11.8% up from 11.7% at 2013's end. Tangible book value per share of $13.81 up $0.02 from year's end and from $13.36 one year ago.
  • CC live on Seeking Alpha at 8:30
  • Press release, Q1 results
  • BAC flat premarket in active action

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Comments (21)
  • Just_woodman
    , contributor
    Comments (31) | Send Message
     
    No comment!!
    16 Apr 2014, 07:30 AM Reply Like
  • thirunagar
    , contributor
    Comments (31) | Send Message
     
    The title cracks me up! So EBIDTA now becomes EBLIDTA for most banks... and BP.
    16 Apr 2014, 07:35 AM Reply Like
  • Yorick
    , contributor
    Comments (577) | Send Message
     
    Question of the Day: If there are always so-called 1 time events which eliminates profit every quarter, is your company making money....really?
    16 Apr 2014, 08:16 AM Reply Like
  • benitus
    , contributor
    Comments (2093) | Send Message
     
    What disappointment and what dismal figures!! Not that they weren't expected but it would be nice if BAC could pull a rabbit from its hat, so I guess they are also human after all, prone to mistakes and exaggeration. Whoever buys into BAC now is heading into disaster because the turnaround is at least two quarters away, so it would be better if the bulls waited a while longer being coming back into the fray, since the bears will be expected to run wild for some time.
    16 Apr 2014, 08:24 AM Reply Like
  • Ruffdog
    , contributor
    Comments (1884) | Send Message
     
    2 quarters are a long time?

     

    long BAC
    16 Apr 2014, 09:04 AM Reply Like
  • benitus
    , contributor
    Comments (2093) | Send Message
     
    Ruffdog...I was saying "at least" two quarters, so it could be longer. Nobody can see that far ahead, or for that matter, what's going to happen tomorrow, so we rely on our experience with the stock to judge the near future. Well, if you're already long BAC, then good for you. But for those who haven't got in yet, it might be good to wait a while before coming into BAC, which was justified by today's response to the earnings report, as it has gone down some 40cts at this time.
    16 Apr 2014, 12:52 PM Reply Like
  • papayamon
    , contributor
    Comments (1190) | Send Message
     
    Let's be realistic. BOA is putting down a rattlesnake's nest of legal problems this quarter. Good quarter, better to follow.
    16 Apr 2014, 09:02 AM Reply Like
  • kman120
    , contributor
    Comments (33) | Send Message
     
    yes, "first mortgage originations fell 65% Y/Y, with production revenue of $273M comparing to $815M a year ago" is killing it!
    16 Apr 2014, 09:05 AM Reply Like
  • Hello Again 83
    , contributor
    Comments (499) | Send Message
     
    BAC beat on both revenue and beat estimates on earnings. I dont know what more you can ask for. The litigation expenses are dropping going forward cause so much is now in the rear view mirror. Super long BAC.
    16 Apr 2014, 09:04 AM Reply Like
  • overunder
    , contributor
    Comments (30) | Send Message
     
    This is sort of like saying other than the big hole in its side the Titanic is sailing along fine.
    16 Apr 2014, 10:25 AM Reply Like
  • Hello Again 83
    , contributor
    Comments (499) | Send Message
     
    BAC stock has tripled since 2008 and just beat again today. If that is the titanic I want to go for the ride.
    16 Apr 2014, 10:58 AM Reply Like
  • benitus
    , contributor
    Comments (2093) | Send Message
     
    overunder...I liked your comment. Keep it up, my friend.
    16 Apr 2014, 12:53 PM Reply Like
  • benitus
    , contributor
    Comments (2093) | Send Message
     
    Hello Again....I can't figure out what is considered good for you. Just because BAC beat a little at the top, that doesn't mean we can ignore the bottom, which is scary, to say the lest. Live long and prosper, my friend.
    16 Apr 2014, 12:55 PM Reply Like
  • Hello Again 83
    , contributor
    Comments (499) | Send Message
     
    So for those of us that bought our shares in 2008 when BAC was a 5 buck stock and our shares have tripled. "My 78 grand is now almost a quarter of a million" You are saying I should worry about the so called bottom line? "My friend that is the bottom line!"
    16 Apr 2014, 05:37 PM Reply Like
  • benitus
    , contributor
    Comments (2093) | Send Message
     
    Hello Again.....I'm not interested in how much you made with BAC because I had made more than double what you did and in cash with BAC and I've got a bunch tucked away in an account for long-term investments, so don't tell me what you don't know. In fact, I don't know what you're trying to say with your last remark. What I said with my previous post is that the recent results is nothing to shout about because the reality is that BAC is still weak, which the market agrees with, as there was no bounce at all after the results, which would be strange if the results are considered good by all and sundry. Good luck on your trades. Have a wonderful Easter. God bless.
    17 Apr 2014, 08:38 AM Reply Like
  • Hello Again 83
    , contributor
    Comments (499) | Send Message
     
    Well the market disagrees with you but God Bless
    17 Apr 2014, 01:27 PM Reply Like
  • benitus
    , contributor
    Comments (2093) | Send Message
     
    Hello Again....I don't know what you're trying to say, about the market disagreeing with me, when there was no bounce at all (not even today) for BAC after the results, which concurs with my observation that BAC is still weak. Please re-read my previous post before you respond rashly. Thank you.
    17 Apr 2014, 05:07 PM Reply Like
  • Hello Again 83
    , contributor
    Comments (499) | Send Message
     
    No I am talking about it being up 40% over the last 52 weeks in spite of litigation. It has beaten earning is 12 out of the last 13 quarters. Most of the litigation is in the rear view mirror and there is not much holding the stock back. Even Oppenheimer Funds just increased BAC to outperform today.
    17 Apr 2014, 06:23 PM Reply Like
  • Hello Again 83
    , contributor
    Comments (499) | Send Message
     
    Click link and see what he says about the fist stock BAC http://cnb.cx/1qR0zbK
    17 Apr 2014, 07:12 PM Reply Like
  • benitus
    , contributor
    Comments (2093) | Send Message
     
    Hello Again....thanks for your clarification. I was talking about a pond and you're referring to the ocean. I was referring to the market's response to the latest earnings report, not over the last 13 quarters. It's the current reaction that has meaning, not something that most people had already forgotten about. Thanks anyway. Happy Easter.
    19 Apr 2014, 02:12 PM Reply Like
  • Just_woodman
    , contributor
    Comments (31) | Send Message
     
    Hello again, I am with you on this as my shares came in @$5.13 and $5.15 a share back when. I am looking forward to the legal mess to be all behind anf $25+ a share in 2 years or less. Will decide from there.
    20 Apr 2014, 09:13 AM Reply Like
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