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Bank of America Corporation (BAC)

- NYSE
  • Tue, Aug. 25, 11:23 AM
    • "Like the basketball player LeBron James, [JPMorgan Chase] is good at both offense and defense,” CLSA analysts Mike Mayo and Chris Spahr write as they upgrade JPM shares to Buy from Outperform with a $78 price target.
    • For defense, JPMorgan (JPM +4.3%) has "a balance sheet that is the most resilient since it has been in its current form, the most stable earnings of U.S. global banks for the past decade, and a dividend level vs. the 10-year that implies stock outperformance 85% of the time," CLSA says.
    • For offense, JPM "is a unique self-help story given tailwinds from expense savings" and has "historically gained market share in tougher environments."
    • Banking shares are broadly higher but the upgrade seems to be giving JPM an extra boost; three analyst upgrades appear to be helping Bank of America (BAC +5.2%) in similar fashion.
    | 9 Comments
  • Tue, Aug. 25, 9:15 AM
    • Bank of America (NYSE:BAC) +6.3% premarket as the stock market is poised for an early rebound from yesterday's losses and BAC shares are upgraded to Outperform from Market Perform with a $19 price target at Bernstein.
    • The selloff provides a more attractive entry point to recovering a "franchise with longer term potential to benefit from higher rates, improved operating leverage, and expanding capital return," the firm writes.
    • BAC also is upgraded to Outperform from Neutral at Baird, which says steady growth in tangible book value should drive appreciation for the shares until the interest rate and growth outlook improves, and upgraded to Neutral from Underperform at Macquarie.
    • Earlier: BofA upgraded at KBW, which sees cheap bank with limited China exposure (Aug. 25)
    | 7 Comments
  • Mon, Aug. 24, 11:15 AM
    • Bank of America (BAC -3.5%) is sharply lower despite getting upgraded to Outperform from Market Perform with a $20 price target at KBW, which believes the hit bank stocks have taken due to the “lower interest rates for longer” sentiment is not all negative, given that there would now be a decline in momentum investors who were buying bank stock merely based on rising rates.
    • The firm says BAC shares have ~26% upside potential, the second highest upside of the 20 large regional/universal banks in its coverage universe, and it raises its annual EPS estimates through to 2017 to $1.48, $1.60 and $1.80 from $1.30, $1.50 and $1.73, respectively.
    • BofA has limited exposure to the Chinese market, KBW notes, comprising less than 1% of the bank’s balance sheet as of Q2 2015.
    | 2 Comments
  • Thu, Jul. 23, 12:14 PM
    • "Many management changes show lack of stability at the top, and some of these changes also seem to result in overlapping responsibilities, which can reduce accountability rather than enhance it,” writes Mike Mayo, still giving Bank of America (BAC -1.7%) a sell rating after the C-suite shakeup.
    • When Paul Donofrio replaces Bruce Thompson as CFO on Aug. 1, he'll become the fourth finance chief to serve at BofA in Brian Moynihan became CEO in 2010. "There must have been some kind of strain between Brian and Bruce for him to step down at age 50,” says analyst Charles Peabody. "You've had five years of declining revenues, and Brian is undoubtedly feeling the heat to grow this thing.”
    • JPMorgan's Vivek Juneja worries Thompson is exiting right in the middle of dealing with two key capital-related issues with the Fed, and wonders if it wouldn't have made more sense to make the change after these were settled.
    • Previously: WSJ: CFO Thompson out at Bank of America (July 22)
    | 20 Comments
  • Wed, Jul. 15, 9:58 AM
    • Consumers continue to shift  away from branches toward self-service, says Bank of America (BAC +2.7%) CFO Bruce Thompson. CEO Brian Moynihan says to expect more branch cuts over time, but warns about upsetting clients if closings are pushed too hard.
    • Full-time equivalent employees at BofA of 216,679 fell from 219,658 at the end of Q1 and 233,201 one year ago. Branch count of 4,789 fell from 4,835 at the end of Q1 and 5,023 one year ago. ATM count of 15,992 stands against 15,903 at the end of Q1 and 15,973 one year ago.
    • The "application of technology" is allowing the cutting of some workers, says Moynihan, while at the same time the bank is hiring "customer-facing" employees. "We continue to work expenses," he says.
    • Earnings call webcast and presentation
    • Live coverage from The Charlotte Observer's Deon Roberts
    • Previously: Bank of America +2.5% after earnings beat (July 15)
    • Previously: Bank of America beats by $0.05, beats on revenue (July 15)
    | 8 Comments
  • Wed, Jul. 15, 7:16 AM
    • Q2 net income (after adjustment) of $4.6B or $0.41 per share vs. $2.3B and $0.19 one year ago. The year-ago result included significant litigation expense related to the mortgage settlement.
    • Adjusted net interest income of $10B vs. $10.4B one year ago.
    • Noninterest income of $11.6B slips $105M from a year ago.
    • Excluding those litigation costs, noninterest expense of $13.6B still fell 6% Y/Y.
    • Consumer Banking net income of $1.7B vs. $1.63B a year ago. Mortgage originations of $16B vs. $11.1B. 1.3M new consumer credit cards issued, the highest number since Q3 of 2008. Mobile banking customers up to 17.6M, with 13% of all deposits done by mobile vs. 10% a year ago.
    • Global Wealth and Investment Management net income of $690M vs. $726M a year ago. Average loans and leases of $130.3M vs. $118.5M. AUM of $930M vs. $879M. Total client balances of $2.52B vs. $2.478B.
    • Global Banking net income of $1.25B vs. $1.44B a year ago.
    • Global Markets net income of $993M vs. $1.1B a year ago. FICC revenue slips 9%, roughly inline with what was likely expected.
    • Legacy Assets and Servicing period-end loans and leases of $30B vs. $36B a year ago. 60+ days delinquent first mortgages serviced by LAS fell to 132K, off 50% from a year ago.
    • CET 1 ratio of 10.3% flat from last quarter. Tangible book value per share of $15.02 vs. $14.79.
    • Conference call at 8:30 ET
    • Previously: Bank of America beats by $0.05, beats on revenue (July 15)
    • BAC +2.5% premarket
    | 20 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%).
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, KIE, IAT, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KBWR, KRU, RWW, RYF, KBWP, KBWI, FINZ, KRS
    | 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%)
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, PSCF, FINZ, KRS
    | 16 Comments
  • Fri, Jun. 5, 10:27 AM
    | 34 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%).
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, KIE, IAT, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KBWR, KRU, RWW, RYF, KBWP, KBWI, FINZ, KRS
    | 10 Comments
  • Wed, May 20, 10:10 AM
    • Those facing criminal charges from the DOJ are UBS (already reported, the stock is up 3.4% today), Barclays (BCS +2.5%), Citigroup (C -0.5%), JPMorgan (JPM -0.4%), and RBS (RBS +1.6%).
    • Bank of America (BAC -0.4%) faces a $205M fine by the Fed, but no criminal charges. Fines by the Fed for the other banks range from $274M-$342M.
    • There are fines from other regulators as well, with the total for all the banks summing to $5.8B. Barclays looks to be hit the hardest on that front, with total monetary penalties of $2.4B.
    | 34 Comments
  • Wed, Apr. 29, 12:14 PM
    • The major averages are lower by 0.5% or more, but margin-starved financials are in the green as rates head higher both here and overseas.
    • Previously: Major selloff in fixed income (April 29)
    • The 10-year U.S. Treasury yield is up six basis points to 2.06% - nearing its highest level of the year - and European yields are shooting up even faster ... All this despite the absence of any GDP growth in the U.S. in Q1.
    • Considered perhaps the most "asset-sensitive" of the TBTF banks, Bank of America (BAC +1.9%) is leading that group higher.
    • Among regional names: Regions Financial (RF +1.1%), Fifth Third (FITB +1.3%) SunTrust (STI +0.9%), BB&T (BBT +0.8%).
    • Insurers: MetLife (MET +2.4%), Prudential (PRU +1.5%), Lincoln National (LNC +1.8%).
    | 9 Comments
  • Wed, Mar. 18, 2:41 PM
    | 11 Comments
  • Tue, Mar. 17, 11:10 AM
    • A possible harbinger of things to come next month when the big banks report Q1 earnings, profits at Jefferies plunged in FQ1 (ended Feb. 28), with FICC, capital markets, and investment banking particularly weak.
    • Previously: Poor results at Jefferies sinks Leucadia (March 17)
    • Jefferies parent Leucadia is lower by 3.7%. Goldman Sachs (GS -1.1%), Morgan Stanley (MS -0.9%), JPMorgan (JPM -1.2%), Citigroup (C -0.1%), Bank of America (BAC -0.8%).
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | 2 Comments
  • Thu, Mar. 12, 12:47 PM
    • Citigroup's (C +2.7%) $7.8B in buybacks was 10% higher than estimated by MKM analyst David Trone. Combined with the nickel dividend, that's total shareholder returns of $8.4B vs. his $7B expectation.
    • Bank of America (BAC -1%) - though given just conditional approval - is set for $4B in buybacks and a nickel dividend. That's a total return of $6.1B vs. Trone's $3.1B estimate. Trone notes the bank can proceed with its buyback prior to resubmitting plans.
    • JPMorgan's (JPM +1%) $6.4B buyback was shy of Trone's $7B estimate, but the 10% dividend increase was better than forecast. The total capital return of $12.9B vs. his $13.2B forecast is a "marginal negative."
    • The dividend hike to $0.65 at Goldman (GS +2.1%) beat Trone's expectation of $0.62. As for the buyback, Goldman's policy of not disclosing the amount remains in place.
    • Morgan Stanley's (MS +4.5%) capital return of $4.3B is more than double Trone's $1.9B estimate.
    • Source: Benzinga
    | 4 Comments
  • Thu, Mar. 12, 8:07 AM
    | 8 Comments
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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.