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Bank of America Corporation (BAC)

  • Wed, Jul. 15, 7:01 AM
    • Bank of America (NYSE:BAC): Q2 EPS of $0.41 beats by $0.05.
    • Revenue of $22.34B (+1.7% Y/Y) beats by $1.02B.
    • Press Release
    | Wed, Jul. 15, 7:01 AM | 28 Comments
  • Tue, Jul. 14, 5:30 PM
  • Tue, Jul. 14, 2:41 PM
    • Analysts are expecting Q2 EPS of $0.36 versus $0.19 one year ago - the big jump coming thanks to last year's Q being hit with litigation costs. Revenue, however, is expected to drop slightly (JPMorgan and Wells Fargo both missed on the top line earlier today).
    • Total loans and leases have been shrinking for years, at least in part as the bank gets out of certain businesses and runs off risky loans. With the financial crisis moving further into the past, can the bank get back to loan growth.
    • Bank of America (BAC +0.5%) has made cost-cutting a priority, but its efficiency ratio is still higher (worse) than peers.
    • Trading revenue. BofA has warned it will be lower than a year ago, and JPMorgan earlier reported a 9% Y/Y decline.
    • Source: WSJ
    | Tue, Jul. 14, 2:41 PM | 9 Comments
  • Tue, Jul. 14, 4:49 AM
    • The nation's largest banks report their second-quarter results this week, beginning with JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) today.
    • Bank of America (NYSE:BAC) and Goldman Sachs (NYSE:GS) are due to report later in the week, along with private equity firm Blackstone (NYSE:BX) and asset manager BlackRock (NYSE:BLK).
    • Despite the stable economy in the U.S., analysts are expecting relatively ho-hum results.
    | Tue, Jul. 14, 4:49 AM | Comment!
  • Mon, Jul. 13, 11:41 AM
    • The team at Morgan Stanley has "high conviction" headed into earnings season on Bank of America (BAC +1.6%), Carlyle Group (CG +1%), and MSCI (MSCI +0.7%).
    • Bank of America has 20% upside to Morgan's $20 price target, they say, the highest potential upside of all the large cap banks. Catalysts: 1) Lower expenses; 2) Rising rates; 3) Fuller valuation of the wealth management unit.
    • Carlyle is the best-positioned in the alternative management space, also with potential 20% upside to the $33 price target.
    • In addition to strong operations, MSCI could see further upside from the announcement of a new buyback program.
    | Mon, Jul. 13, 11:41 AM | 11 Comments
  • Mon, Jul. 6, 4:41 PM
    • Last year, the Fed and FDIC found most of wind-down plans submitted by twelve of the largest U.S. banks (or U.S. units of overseas banks) had numerous deficiencies, and sent the lenders back to the drawing board.
    • The two government agencies today posted public sections of the latest versions of the living wills, and said they will begin reviewing. Feedback is expected before year-end.
    • The lucky 12: BAC, BK, C, GS, JPM, MS, STT, UBS, WFC, BCS, CS, DB.
    | Mon, Jul. 6, 4:41 PM | 6 Comments
  • Fri, Jun. 26, 11:03 AM
    • Advisers Dodd Koeckert and Nicholas Anger recently exited Merrill Lynch (NYSE:BAC) - where they oversaw about $1.2B in client assets - for RBC Wealth Management (NYSE:RY). Koeckert was a three-decade veteran at Merrill and frequently made the list of Barron's top advisers.
    • Earlier this week, Merrill lost two other advisers with $185M in AUM to RBC, and two others with $620M for Morgan Stanley.
    • The company has been on both sides of the tally though, and last week brought on 20 advisers (most from Barclays) managing more than $1.8B.
    • Source: WSJ
    | Fri, Jun. 26, 11:03 AM | 11 Comments
  • Mon, Jun. 22, 2:44 PM
    • Financials sunk along with Treasury yields last week, but are seeing a strong bounce today alongside a ten basis point gain in the 10-year yield to 2.36%.
    • The XLF is up 1.6% versus the S&P 500's 0.7% gain.
    • Helping U.S. equity markets is movement toward a Greek debt deal which sent Europe's Stoxx 50 hurtling 4% higher on the session. Yields tumbled in the periphery, but are sharply higher in Germany as well as the U.S.
    • Yield-sensitive Bank of America (BAC +1.8%) is leading the TBTF names higher. In regionals: PNC Financial (PCN -0.2%), KeyCorp (KEY +1.2%), Regions Financial (RF +1.4%), SunTrust (STI +1.3%), First Niagara (FNFG +1.2%).
    • Life insurers: MetLife (MET +2%), Prudential (PRU +1.6%), Lincoln FInancial (LNC +1.4%). Online brokers: E*Trade (ETFC +3.3%), Schwab (SCHW +2.2%), Ameritrade (AMTD +1.3%).
    | Mon, Jun. 22, 2:44 PM | 13 Comments
  • Wed, Jun. 17, 11:30 AM
    • While the OCC lifted consent orders against Bank of America (NYSE:BAC), Citibank (NYSE:C), and PNC Financial (NYSE:PNC) after finding unsafe and unsound mortgage-servicing and foreclosure practices back in 2011, Wells Fargo (NYSE:WFC) is part of a group facing new restrictions.
    • Among other items, report Deon Roberts and Rick Rothacker, Wells Fargo is banned from entering new contacts to perform mortgage servicing for other lenders. The bank may still make and service new mortgages.
    • OCC Deputy Controller Morris Morgan expects corrections from the group to be made in months, not years. “We have reserved the ability to take additional action against the six, and we plan to do so based on how quickly and effectively they remediate the remaining actions."
    • The other five: JPMorgan (NYSE:JPM), HSBC Bank USA (NYSE:HSBC), Santander Bank (NYSE:SAN), U.S. Bank (NYSE:USB), and EverBank (NYSE:EVER)
    | Wed, Jun. 17, 11:30 AM | 12 Comments
  • Thu, Jun. 11, 11:23 AM
    • Corporate brokering doesn't generate much in the way of fees, but investment banks see the gig as getting a foot in door for more lucrative work like advising on M&A and capital raises.
    • For Bank of America (NYSE:BAC), it would be getting the job just as Royal Bank of Scotland is set to begin one of the largest privatizations in U.K. history.
    • Previously: U.K.'s Osborne: Government to begin selling RBS shares (June 10)
    • Bank of America also acts as corporate broker to Lloyds - another bailed-out U.K. bank returning to being privately owned. RBS's current brokers are Morgan Stanley and UBS, with UBS reportedly dropping out of the role due to conflicts of interest with existing privatization work.
    • Source: WSJ
    | Thu, Jun. 11, 11:23 AM | 2 Comments
  • Wed, Jun. 10, 10:01 AM
    • More than six years after the bottom, only four of the globe's biggest banks sport stock prices trading at a premium to book value. Leading the way is UBS at about 1.4x book. Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), and Morgan Stanley (NYSE:MS) also trade for north of book.
    • Deutsche Bank (NYSE:DB) - whose ROE of 2% is about one-tenth of what it was pre-crisis - brings up the rear at just about 0.5% of book. Barclays (NYSE:BCS) sells for roughly 0.7x book, and Bank of America (NYSE:BAC) only slightly more than that.
    • Checking further on ROE, Goldman leads the way at about 12%. Citigroup (NYSE:C) is less than 5%, but stands out as being the only bank with a higher ROE today than before the crisis.
    • Looking at total return since the crisis, Goldman again leads the way at about 170%, with Morgan Stanley and JPMorgan a close second/third. Citigroup is the only major bank with a negative total return over that time frame.
    • Source: Bloomberg
    | Wed, Jun. 10, 10:01 AM | 13 Comments
  • Tue, Jun. 9, 2:45 PM
    • Yield-starved financial sector names were mercilessly punished to start 2015 as sharply falling interest rates in January again disappointed investors waiting for the return of some spread income.
    • The rout in bond prices since, alongside what now seems the near-certainty of the beginning of Fed rate hikes in as soon as three months has helped turn things around, and the sector - as measured by the Financial Select SPDR (NYSEARCA:XLF) - is now in the green for the year, and trails the S&P 500 by just about 150 basis points.
    • Among the notable movers today as the 10-year yield rises to another 2015 high: Bank of America (BAC +1.4%), Wells Fargo (WFC +1.2%), U.S. Bancorp (USB +1.4%), Regions Financial (RF +1.3%), Huntington Bancshares (HBAN +1.6%), KeyCorp (KEY +1.6%), PNC Financial (PNC +1.3%), M&T (MTB +1.1%), Bank of Hawaii (BOH +1.6%), First Horizon (FHN +1.2%), Lincoln National (LNC +1.1%), E*Trade (ETFC +0.9%)
    | Tue, Jun. 9, 2:45 PM | 16 Comments
  • Fri, Jun. 5, 2:36 PM
    • Cost-cutting is still a catalyst for Bank of America (BAC +2.5%), says JPMorgan's Vivek Juneja, noting the lender could add another $0.06 to annual EPS and improve its efficiency ratio by 100 basis points by cutting LAS expenses another $250M (as it plans to do). The bank has also just begun its SIM program (Simplify and Improve) to find cost savings which will free up money for growth investments.
    • Goldman Sachs (GS +0.5%), says the team at Wells Fargo, is set to benefit from continued strength in M&A, plus potential to see greater client activity as rates rise. The bank's greater expense flexibility suggests it will maintain a healthy ROE advantage to peers. The consensus for peer ROE next year is 8.8% - for Goldman to maintain its edge, says Wells, it would need to generate a ROE of 15.4% vs. the 14.7% it posted in Q1 this year.
    • Previously: Financials on the move as rate hike draws nearer (June 5)
    | Fri, Jun. 5, 2:36 PM | 17 Comments
  • Fri, Jun. 5, 10:27 AM
    | Fri, Jun. 5, 10:27 AM | 34 Comments
  • Wed, Jun. 3, 12:36 PM
    • “A clear separation has emerged between the biggest brokers and the rest of the market,” says Jay Bennett of Greenwich Associates. A survey by his firm finds the top four U.S. equity brokers - Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC), and Morgan Stanley (NYSE:MS) - are widening their market share lead over the rest of the industry.
    • According to Greenwich, all had more than an 8% share of trading, with number five Credit Suisse (NYSE:CS) at 6.9%.
    • Bennett calls it a segmented market composed of the big four, the rest of the bulge bracket, and a long tail of competitors with relatively smaller shares.
    • ETFs: IAI, KCE, KBWC
    | Wed, Jun. 3, 12:36 PM | 4 Comments
  • Tue, Jun. 2, 3:31 PM
    • The averages are flat to negative this session, but yield-starved financials are digging the big jump in interest rates - the 10-year Treasury yield is up nine basis points on the session to 2.27%, and 15 bps for the week.
    • Previously: Yields surge as European deflation fears abate (June 2)
    • The Regional Bank ETF (KRE +1.3%) and the Bank ETF (KBE +1.2%).
    • Individual names: Regions Financial (RF +1.6%), New York Community Bank (NYCB +1.3%), Huntington Bancshares (HBAN +1.3%), KeyCorp (KEY +1%), Fifth Third (FITB +1.3%). Thought of as perhaps the most asset-sensitive of the large lenders, Bank of America (BAC +1%) is leading the TBTFs higher.
    • Life insurers: MetLife (MET +1.2%), Prudential (PRU +1.5%), Lincoln Financial (LNC +0.9%), Primerica (PRI +1.2%).
    | Tue, Jun. 2, 3:31 PM | 10 Comments
Company Description
Bank of America Corporation is a bank holding and a financial holding company. Through its subsidiaries, it provides banking and non-banking financial services and products throughout the United States and in selected international markets.