Bank of America Corporation (BAC) - NYSE
  • Mon, Jul. 18, 10:49 AM
    • Citi's Keith Horowitz notes 3% revenue growth in Q2 represents the best quarter for that metric since Q4 of 2012. Core expenses fell on a year-over-year basis for the 17th consecutive quarter.
    • While it was a "noisy" quarter, Nomura's Steven Chubak notes fee income and the efficiency ratio were positive surprises, while core net interest income and credit costs were inline. This quarter's resetting of interest rate expectations (lower for longer) and curve flattening could put a damper on any positive EPS estimates for H2 and 2017, but Chubak suspects the stock price at 82% of tangible book value has already discounted this.
    • Speaking on the earnings call, CEO Brian Moynihan says Bank of America (BAC +1.9%) doesn't need higher interest rates to grow earnings. Expense cuts and plans to grow fee income can do the job for now.
    • WSJ blog
    • Previously: Bank of America edges higher after Q2 beat (July 18)
    | Mon, Jul. 18, 10:49 AM | 6 Comments
  • Thu, Jul. 14, 8:19 AM
    • Among the items boosting the quarter was a big rebound in markets revenue (which includes FICC) - up 23% Y/Y to $5.56B. The bank had previously unofficially guided to more than a 10% gain in trading revenue.
    • Jamie Dimon has previously said that the myriad legal and regulatory issues pressuring the bank were beginning to dissipate, and this quarter JPMorgan reported a legal benefit of $430M vs. $291M of expenses a year ago.
    • Energy? JPMorgan's Corporate  &  Investment bank booked a $235M credit loss vs. $50M a year ago, though $185M of that loss came from one customer. The commercial bank had a reserve release of $25M vs. needing to add $304M in Q1.
    • Citigroup (NYSE:C+2.6%, Bank of America (NYSE:BAC+2.1%, Goldman Sachs (NYSE:GS+2.25%, Morgan Stanley (NYSE:MS+1.8%, Wells Fargo (NYSE:WFC+1.4% premarket
    | Thu, Jul. 14, 8:19 AM | 13 Comments
  • Wed, Jun. 15, 3:17 PM
    • Having already shed value in June as expectations for rate hikes evaporated, the financial sector (XLF +0.7%) is showing relative strength following the FOMC's standing pat and dialing back expectations for the future level of the Fed Funds rate.
    • The S&P 500 is higher by just half the amount of the financials.
    • Within financials, the banks (KBE +1.1%), (KRE +1.1%) are particularly strong, led by Bank of America (BAC +1.5%), Morgan Stanley (MS +1.3%), Citigroup (C +1%), BB&T (BBT +1.2%), Fifth Third (FITB +2.2%), SunTrust (STI +1.4%), Zion (ZION +1.3%).
    | Wed, Jun. 15, 3:17 PM | 10 Comments
  • Tue, Jun. 14, 3:48 PM
    • The S&P 500 is down just 0.25%, but the financial sector (XLF -1.5%) is taking a far larger beating as the idea of higher interest rates fades, with German 10-year yields falling below zero, and the U.S. 10-year Treasury yield within sight of its all-time low. KBE -2.3%, KRE -2.3%
    • The FOMC concludes its two-day policy meeting tomorrow, at which updated economic projections and dots will be unveiled, along with a Janet Yellen press conference.
    • How much of the panic into fixed-income is due to concern about the U.K. exiting the EU will become evident next Thursday night as that country's Brexit votes are tallied.
    • Bank of America (BAC -2.5%), Citigroup (C -3.1%), Wells Fargo (WFC -2.5%), Regions Financial (RF -2.9%), KeyCorp (KEY -3.7%), PNC Financial (PNC -2.4%), Fifth Third (FITB -2.6%), SunTrust (STI -2.8%), E*Trade (ETFC -2.6%), MetLife (MET -1.6%), Prudential (PRU -1.8%), BNY Mellon (BK -2%)
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF
    | Tue, Jun. 14, 3:48 PM | 89 Comments
  • Fri, Jun. 3, 9:47 AM
    • At the moment, it's looking like "wait till next year," for the higher interest rates much of the yield-starved financial sector has been waiting for. This morning's disappointing jobs numbers has traders quickly reversing bets on a rate hike this summer.
    • Meanwhile, the 10-year Treasury yield has crumbled to a two-month low of 1.70%.
    • The XLF is down 1.9%, leading the S&P 500's 0.5% decline. The SPDR KBW Bank ETF (KBE -3.5%), the SPDR Regional Banking ETF (KRE -3.4%).
    • Among the Too Big To Fail names, Bank of America (BAC -4.7%) and Citigroup (C -4.8%) are hardest hit. In regionals, Regions Financial (RF -4.4%), KeyCorp (KEY -4%), BB&T (BBT -3.3%), Fifth Third (FITB -4.4%).
    • State Street (STT -3.5%), Northern Trust (NTRS -3.8%), Schwab (SCHW -5.4%), E*Trade (ETFC -5.8%), Ameritrade (AMTD -5.5%), MetLife (MET -3.6%), Prudential (PRU -3.2%), Lincoln Financial (LNC -4.1%)
    • ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, FNCL, SEF, FXO, KBWB, QABA, KBWR, RYF, FINU, KRU, RWW, XLFS, FINZ, KRS, JHMF, WDRW, FAZZ, DPST, FNCF
    | Fri, Jun. 3, 9:47 AM | 140 Comments
  • Tue, May 24, 10:22 AM
    • Stocks had already started the morning nicely in the green, but a blowout new home sales number for April has the homebuilders higher by about 2.5%, and the major indexes up by more than 1%.
    • It's also got traders upping bets on a June rate hike, with another move to follow before year-end. That's boosting the yield-starved financials (XLF +1.5%), particularly the banks (KBE +2%).
    • Among the financial movers: Bank of America (BAC +1.4%), JPMorgan (JPM +1.9%), Regions Financial (RF +1.8%), Fifth Third (FITB +2.1%), E*Trade (ETFC +2.9%), Interactive Brokers (IBKR +2.6%), MetLife (MET +1.8%), Prudential (PRU +2.2%), Lincoln National (LNC +1.8%), State Street (STT +2.1%)
    | Tue, May 24, 10:22 AM | 21 Comments
  • Wed, May 18, 1:08 PM
    • The meme of rates lower for longer has been stood on its head in the last 24 hours thanks to some decent economic data, but also surprisingly hawkish Fedspeak yesterday.
    • The fixed-income world now believes remarks from the Fed's Williams and Lockhart yesterday may have been a preview of what we'll get when the real power speaks tomorrow - Fischer and Dudley - and then on May 27, when Janet Yellen gives a speech.
    • Up at 2 ET are the minutes from the FOMC's April meeting.
    • The 10-year yield is higher by five basis points to 1.82% and short-term rate markets have upped expectations for a Fed move this year.
    • XLF +1.85%, KBE +3.15%, KRE +3.3%
    • Bank of America (BAC +3.7%), Citigroup (C +4.2%), JPMorgan (JPM +3.2%), Wells Fargo (WFC +2.1%), U.S. Bancorp (USB +2.1%), Regions (RF +3.3%), KeyCorp (KEY +3.7%), PNC Financial (PNC +2.7%), Fifth Third (FITB +3.7%), Capital One (COF +1.9%), E*Trade (ETFC +4.4%), Schwab (SCHW +4.8%), MetLife (MET +2.9%), Prudential (PRU +3.4%), Lincoln National (LNC +4.2%), BNY Mellon (BK +2.3%), Northern Trust (NTRS +2.9%)
    | Wed, May 18, 1:08 PM | 75 Comments
  • Fri, May 13, 5:52 PM
    • David Tepper and Appaloosa have filed their 13F, and while it shows new positions in Valeant (NYSE:VRX), Bank of America (NYSE:BAC), Facebook (NASDAQ:FB) and Fox (FOX, FOXA), a source told CNBC that he's already sold that Valeant stake.
    • Shares in Valeant moved accordingly after the release: First up as much as 2.9% after hours, then back again to a 0.6% gain.
    • Meanwhile, the firm notes dissolved stakes in Apple (AAPL, sold 1.26M shares), HP Enterprise (HPE, sold 3.66M shares) and Eastman Chemical (EMN, sold 700K shares).
    • In energy bets, Tepper heavily increased stakes in Williams Partners (WPZ, +10.87M shares) and Energy Transfer Partners (ETP, +11M shares), while cutting a stake in Kinder Morgan (NYSE:KMI) by 4.95M shares.
    | Fri, May 13, 5:52 PM | 85 Comments
  • Thu, Apr. 14, 10:32 AM
    • Living will: The fixes are "completely doable," says CFO Paul Donofrio, addressing yesterday's rejection of his bank's wind-down plan.
    • Return on assets: ROA slipped to 0.5% in Q1 from 0.6% a quarter earlier - just half of CEO Brian Moynihan's goal of 1%. Moynihan tells callers interest rates will have to rise before that level can be reached.
    • Mobile still growing fast: The bank in Q1 had 19.6M active users of its mobile banking services, up 15% from a year ago. 16% of deposits are now done through mobile devices. On branch cuts, management says they are consolidating into larger branches, and the new ones look more like a sales office than a traditional branch. Donofrio: “I think the branches are not going to be places where people come to transact. They’re going to come for a product they need because something changed in their life."
    • Expenses: The efficiency ratio improved, but it's still a whopping 75% vs. peers in the mid-to-high 50s. Moynihan wants to at least get it down to the low-60s. Pressed on expenses by Mike Mayo, Donofrio says the bank is splitting cost savings between future growth and the bottom line. "It's a lever we can pull over an extended period of time."
    • Presentation slides
    • WSJ blog
    • Now read: Bank Of America: This Is Disappointing! (April 14)
    • BAC +1.1%
    | Thu, Apr. 14, 10:32 AM | 5 Comments
  • Wed, Apr. 13, 11:31 AM
    • JPMorgan's revenues and profits both fell from a year ago, but the lame performance of the banks thus far this year has already priced in a weak quarter. JPMorgan is higher by 3.8%, with Citigroup (C +4.7%), Bank of America (BAC +3.5%), Wells Fargo (WFC +1.7%), Goldman Sachs (GS +2.9%), and Morgan Stanley (MS +4.4%) joining the party. The XLF is higher by 1.75% vs. the S&P 500's 0.7% advance.
    • But what about all of these players (except for Citi) having their living wills rejected by the Fed, FDIC, or both? A sideshow, no doubt. Regulators are going to regulate - like the commercial goes, "It's what they do." Banks will tweak plans, numbers, or whatever they need to in order to get D.C. to eventually sign off.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IAI, IYG, FNCL, SEF, FXO, RYF, KCE, FINU, RWW, XLFS, FINZ, FAZZ
    | Wed, Apr. 13, 11:31 AM | 24 Comments
  • Thu, Apr. 7, 3:09 PM
    • The 10-year Treasury yield at 1.69% has returned back to levels not seen since the panicky action in mid-February. And while the Fed has marked down its expectation of rate hikes this year to just two, short-term interest rate markets haven't even priced in one.
    • This leaves those whose business model depends on riding the yield curve having to contend with not only a middling macro picture, but - once again - a rates lower for longer picture (although Jamie Dimon says his big fear is that markets aren't pricing in nearly enough in the way of higher rates).
    • Citigroup (C -4.1%), Bank of America (BAC -3.3%), U.S. Bancorp (USB -2.8%), KeyCorp (KEY -3.4%), Regions Financial (RF -3.4%), BNY Mellon (BK -3.6%), E*Trade (ETFC -4.7%), Manulife (MFC -5.2%), Lincoln National (LNC -3.6%)
    | Thu, Apr. 7, 3:09 PM | 13 Comments
  • Tue, Mar. 29, 2:49 PM
    | Tue, Mar. 29, 2:49 PM | 10 Comments
  • Wed, Mar. 16, 2:28 PM
    | Wed, Mar. 16, 2:28 PM | 55 Comments
  • Wed, Feb. 24, 1:13 PM
    • It's another nasty session for banks today, writes David Reilly, and the KBW Nasdaq Bank Index is now lower by almost 20% YTD, with names like Citigroup (C -2.3%) and Bank of America (BAC -2.3%) down nearly 30%.
    • The nasty feedback cycle begins with the crash in the oil price, which stings banks thanks to worries of big losses on energy-lending, and more broadly hurts lenders by dragging down the stocks in general. This in turn, leads to concern about a recession would further ding bank profits.
    • More ominous, the yield curve is flattening. Using the spread between two-year and 10-year Treasury notes isn't a bad proxy for bank profits and it's slumped to just 0.96% today. Old-timers will remember when this spread used to turn negative - a sure sign of looming recession.
    • The good news, says Reilly, is that the energy crash and low rates don't look to cause the sorts of losses seen in 2008. Take the long view - the cycle will someday turn.
    • ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, SEF, FNCL, FXO, KBWB, QABA, RYF, FINU, KBWR, KRU, RWW, FINZ, KRS, XLFS
    | Wed, Feb. 24, 1:13 PM | 35 Comments
  • Tue, Feb. 23, 2:38 PM
    • Holding its investor day today, JPMorgan said it was going to add another $500M to energy-related loan-loss reserves. This followed a $67M provision in Q4, which at the time brought total oil and gas loss reserves to $815M (vs. a portfolio with book value of $44B).
    • In addition, the bank said it could need to add another $1.5B to reserves should oil hang around $25 per barrel over the next 18 months. For perspective, prior to Q4, JPMorgan hadn't had to add to reserves for six years - in fact reserve releases were a big boost to profits across the industry.
    • "When the biggest bank increases reserves for potential oil losses it sets a tone for the industry,” says Mike Mayo.
    • Separately, the FDIC says bad loan provisions across the banking sector were $3.8B higher in Q4 than a year earlier.
    • JPMorgan (JPM -3.5%), Citigroup (C -2.9%), Bank of America (BAC -2.9%), Wells Fargo (WFC -2%), U.S. Bancorp (USB -3%), Regions Financial (RF -3.8%), Comerica (CMA -4.2%), Zions (ZION -4.1%), PNC Financial (PNC -2%).
    • ETFs: KRE, KBE, IAT, KBWB, QABA, KBWR, KRU, KRS
    | Tue, Feb. 23, 2:38 PM | 56 Comments
  • Thu, Feb. 11, 2:37 PM
    • Oil's lower by 3.3% today, but it's the financial sector (XLE -3.1%) again leading the S&P 500's 2.15% decline.
    • For the year, the XLF is down by 17.9%, easily outpacing on the downside energy (down 13%) and the S&P 500 (down 11%).
    • With the 10-year yield plunging all the way to 1.6% and short-term rates markets now beginning to price in Fed rate cuts this year, the banks are being hit particularly hard: Bank of America (BAC -8.1%), Citigroup (C -7.6%), JPMorgan (JPM -5.1%), Wells Fargo (WFC -2.9%), Goldman Sachs (GS -5.4%).
    • Leading regionals (KRE -4.4%) lower are KeyCorp (KEY -5.9%), Huntington Bancshares (HBAN -4.9%), Fifth Third (FITB -5.4%), and PNC Financial (PNC -4.4%).
    • ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, SEF, FNCL, FXO, KBWB, QABA, RYF, FINU, KBWR, KRU, RWW, FINZ, KRS, XLFS
    • Previously: Lots of negative rate talk at Yellen hearing (Feb. 11)
    • Previously: Insurers punished as rates plunge (Feb. 11)
    | Thu, Feb. 11, 2:37 PM | 69 Comments
Company Description
Bank of America Corp. operates as a bank holding company, which provides banking and nonbanking financial services and products through its banking and various nonbanking subsidiaries throughout the U. S. and in certain international markets. It operates through five segments: Consumer and... More
Sector: Financial
Industry: Regional - Mid-Atlantic Banks
Country: United States