Another big bank beats; this time BofA


Net income of $2.3B or $0.19 per share includes pretax litigation expense of $4B, or $0.22 per share after tax.

Net interest income of $10.226B falls 5% Y/Y, with NIM off 2 basis points to 2.26%.

Noninterest income of  $11.734B falls 4%. Consumer and Business banking net income of $1.788B rises 29% from a year ago, with mobile banking customers of 15.5M up 17%. Consumer Real Estate Services net loss of $2.8B compares to net loss of $930M a year ago, with 1st-mortgage originations off 59%. Global Wealth and Investment Management net income of $724M falls from $759M. Global Banking net income of $1.353B vs. $1.3B a year ago. Global Markets net income of $1.1B gains 14%, with FICC revenue of $2.4B up 5% Y/Y.

Noninterest expense of $18.5B rises from $16B thanks to litigation expenses. Excluding that, noninterest expense of $14.6B declined 6% as the bank continues to cut staff, particularly in LAS (legacy mortgage servicing).

The bank settles with AIG over all MBS issues for $650M, and AIG agrees to pull its objection to BAC's $8.5B private-label securities settlement (the Article 77 proceeding).

Tangible book value per share of $14.24 up from $13.81 at end of Q1.

Shares flat premarket

Previously: Bank of America beats by $0.12, beats on revenue

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Comments (28)
  • SA_Member_28109933
    , contributor
    Comments (23) | Send Message
     
    As expected
    16 Jul 2014, 07:31 AM Reply Like
  • dictionshunary
    , contributor
    Comments (770) | Send Message
     
    Buy BAC and stay long.
    16 Jul 2014, 07:41 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4855) | Send Message
     
    Another ho-hum quarter delivered by the ho-hum, hubris-heavy Management of what is truly the leading giant in the financial industry in law-breaking and serial fraud in the 21st century: 19 cents and a single dull penny dividend. No amount of PR cotton candy can conceal this crummy continuing sub-performance.

     

    Badly needed is a dramatic change in leadership of this sagging and disreputable institution as well as the leadership of the Board of derelict Directors.

     

    …funfun..
    16 Jul 2014, 07:54 AM Reply Like
  • Nasty_nas
    , contributor
    Comments (72) | Send Message
     
    What's the 4bil litigation charge? Details?
    16 Jul 2014, 08:01 AM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    Our government has decided they are the only ones that will be making money right now...The rest of us can wait..lets take from shareholders, Ira's and the Us economy....What a crazy train!

     

    Im sick of them...4 billion dollar "Whale" loss was the end of the world, but a 17 billion dollar loss is o.K. Hypocrisy?
    16 Jul 2014, 08:02 AM Reply Like
  • OneCitizen
    , contributor
    Comments (526) | Send Message
     
    "The problem with socialism is that you eventually run out of other peoples' money."
    M. Thatcher
    16 Jul 2014, 08:58 AM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    Its pretty obvious they dont seem to care...
    16 Jul 2014, 09:04 AM Reply Like
  • TBV
    , contributor
    Comments (184) | Send Message
     
    Better than expected Revenue! Good sign for long term investors.
    16 Jul 2014, 08:07 AM Reply Like
  • miriam ledwith
    , contributor
    Comments (322) | Send Message
     
    Very nice, BAC. Will add to my position.

     

    To WOW:

     

    A different topic, but same theme: Feds are increasing tax on TSA fees for all fliers; $$$ will not go to TSA, however, but will go to paying down federal debt.......heard on 6ABC very early AM today. Another tax on the productive and the producers.
    16 Jul 2014, 08:13 AM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    Ya I have a real problem with shareholder, IRA accounts and US economy's money paying down a irresponsible governments debt base on shaky litigation, it means they will think nothing of running it up again and shaking down the banks to pay it off in my opinion...creating a cycle of dysfunction... that is what I believe the bailout laws tried to prevent....Its way beyond out of control in my opinion...
    16 Jul 2014, 08:33 AM Reply Like
  • Nasty_nas
    , contributor
    Comments (72) | Send Message
     
    Give it a rest already.
    You and fun fun are getting quite redundant.
    I know you don't wanna be regarded on the same level as fun fun.
    We get it. DOJ suits suck. It's the hot topic.
    Fun fun we get it BAC mgt sucks. Can we move on to something more insightful
    Just a request.
    16 Jul 2014, 08:49 AM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    Its pretty hard to remain positive when all you have for six years is a government that only dishes negativity out...They like to punish everyone...I believe

     

    I've know lots of good people in that bank and Im really sick of hearing how they are all criminals when most had nothing to do with CW issues or any of this...Its gone beyond... and unless there is something they are not telling us, its long past time to move on...

     

    What type of intelligent conversation can you even have at this point about this Bank? ITS ALL POLITICS....
    16 Jul 2014, 09:07 AM Reply Like
  • Buckoux
    , contributor
    Comments (9591) | Send Message
     
    Nasty_nas & Wow72,

     

    "What type of intelligent conversation can you even have at this point about this Bank? ITS ALL POLITICS.... "

     

    That's the problem when government has its whole body in the economic pool rather than just its toes (as it should be). Everything becomes political and the government adds its own gravity to warp the economy in a negative way. And, when government gets this big, it becomes just another "self-interest" at the economic trough. In that way government enabled the Great Recession.
    16 Jul 2014, 10:40 AM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    Seeing is making me a believer for sure Buckoux!
    16 Jul 2014, 04:25 PM Reply Like
  • Archman Investor
    , contributor
    Comments (3370) | Send Message
     
    Maybe a different take?:

     

    http://bit.ly/1jPfft5
    16 Jul 2014, 08:17 AM Reply Like
  • june1234
    , contributor
    Comments (4472) | Send Message
     
    Profits down 43% yr over yr(not lawyers the banks). A drop of 49 percent in home equity and home purchase loans from the year-earlier quarter.
    16 Jul 2014, 08:19 AM Reply Like
  • OneCitizen
    , contributor
    Comments (526) | Send Message
     
    Interesting pre-market standing.
    http://bit.ly/1jPg4lx

     

    The smart folks are baiting the small fry :)
    16 Jul 2014, 08:23 AM Reply Like
  • Nasty_nas
    , contributor
    Comments (72) | Send Message
     
    Long lasting company + temporarily scandal = long term value.
    16 Jul 2014, 08:50 AM Reply Like
  • Woodcrafter60
    , contributor
    Comments (60) | Send Message
     
    That's what good CEO's do
    16 Jul 2014, 08:57 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4855) | Send Message
     
    Long-lasting scandal + indelible impairment of shareholder value.

     

    …funfun..
    16 Jul 2014, 09:01 AM Reply Like
  • William Rudder
    , contributor
    Comments (387) | Send Message
     
    Pretty flat pre-market. Works for me...
    16 Jul 2014, 09:16 AM Reply Like
  • EquityTrader1975
    , contributor
    Comments (409) | Send Message
     
    45 dollars in 2 more years all while paying a div, make this a chunk of your portfolio, buy it shut up and don't worry
    16 Jul 2014, 09:17 AM Reply Like
  • SA_Member_28109933
    , contributor
    Comments (23) | Send Message
     
    I think Nasty_nas has it figured out. Wow, I had no idea of the magnitude of the bitterness towards BAC. If anyone has lost money in the market it's your fault. If you lost on BAC, also your fault. If you can't manage your investments put your money in a mattress. When the economy was tanking in '08', '09' you should have sold, waited a few months and re- invested. This is the market. IT'S cycular. Like the weather. Sometimes instead of listening to the weather man.Look out the window
    16 Jul 2014, 09:20 AM Reply Like
  • OneCitizen
    , contributor
    Comments (526) | Send Message
     
    "If anyone has lost money in the market it's your fault. If you lost on BAC, also your fault."

     

    Add to that , "if you loaned money well beyond your means to buy a house of for whatever reason and one day you got your behind kicked out on the kerb...you guessed it, also YOUR FAULT!!!!"
    16 Jul 2014, 09:24 AM Reply Like
  • SA_Member_28109933
    , contributor
    Comments (23) | Send Message
     
    Yes its your fault. People knew they couldn't afford that house. But took the mortgage anyway. BAC's fault. Car repossessed, BAC'S fault. Your toast is burnt must be BAC'S fault. It sucks to lose money. But it's not always someone's fault.
    16 Jul 2014, 09:41 AM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    LIOWN,

     

    I havent lost money, and I would not blame anyone if I did... its just the government is the only thing standing in the way of BAC's share price recovering....The same company they considered important enough to bail out???... like I said its beyond any sensible point...and anyone who does not see this really doesnt get it!.....

     

    Meanwhile our borders remain porous as we pay through the nose for our government to protect us.....There are lots of children but there has been a total estimated 300,000 crossings men, women, children...in the past few months...It only takes one terrorist...I will hold this government responsible for letting it get this far out of control.....I believe we were promised somewhere during the eighties our borders would be secure..during the last amnesty..Still hasn't happened.....Ive lost so much respect for my government, they are a joke...I'm sorry...Look at this country right now..
    16 Jul 2014, 04:42 PM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    This is the format we will be following: http://bit.ly/1qgfq30

     

    As long as we all follow along and remember these guys have all the right answers for us! Hooray!
    16 Jul 2014, 04:54 PM Reply Like
  • Scoreboard
    , contributor
    Comments (166) | Send Message
     
    OneCitizen, LIOWN... I agree in principle. And eventually the "target" will move to some other institution. The "public" is easily manipulated through various sources... but the public is fickle. I believe the social and political flack BAC absorbed was (and still is to some extent) driving the market sensibilities to artificially depress this stock. And it certainly seems there are enough "haters" to keep fueling the fire for awhile. It appears, often times, that only blame should be put on BAC. But, in fairness, BAC as well as most big institutions suffer from the same greed that individuals display. But the collective American Society seems to have a very tough time EVER thinking the finger should be pointed at THEM. No, no, no, ... it has to be some villain that "led them astray" and caused them to act inappropriately. The banks and other institutions are far from blameless... but many (not all) of the individuals involved in these transactions had to know something was not right. The question in these forums (hopefully) is what to do next in terms of investments. You'll see some good discussion on this. But this mornings news is certainly positive for those who have an investment in BAC. If you sense there are those who just want to "hate" BAC no matter what the market is saying... please... just ignore the comments and move on to those who can help you with sound investment advice. Based on some recent advice, and a day of research, I'm coming to the conclusion that perhaps the bank should make some changes in its management structure. I do not think Moynihan should go. But perhaps some upper level execs can be replaced with bankers that will exert a more positive direction for the bank. The bank has paid out a lot of money to settle the array of problems that were before them. I will say, that I think the bank is making progress on this front... and hopefully will continue to post positive economic fundamentals.
    16 Jul 2014, 04:08 PM Reply Like
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