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Bank of America Corporation (BAC)

  • Wed, Apr. 15, 12:14 PM
  • Wed, Apr. 15, 7:23 AM
    • Q1 net income of $3.4B or $0.27 per share vs. a loss of $276M and $0.05 one year ago. This year's results include $0.09 per share in charges for annual retirement-eligible costs and market-related net interest income adjustments.
    • Excluding litigation costs of $370M this year vs. $6B one year ago, noninterest expense of $15.3B fell 6% from a year ago.
    • Consumer Banking net income of $1.475B vs. $1.468B a year ago. Average deposit balances of $531.4B up 5%. Client brokerage assets of $118.5B up 18%. Mobile banking customers of 16.9M up 13%, with 13% of deposit transactions done through mobile up 10% Y/Y. $13.7B in mortgages originated and $3.2B of home equity loans vs. $8.9B and $2B one year ago.
    • Global Wealth and Investment Management net income of $651M vs. $729M a year ago. Revenue was stable at $4.5B. AUM of $917B vs. $842B.
    • Global Banking net income of $1.365B vs. $1.291B a year ago.
    • Global Markets net income of $945M vs. $1.313B a year ago, with revenue of $4.6B down 8%. FICC revenue fell 7%.
    • Legacy Assets and Servicing (LAS) loss of $238M vs. a loss of $4.9B a year ago.
    • Tangible book value per share of $14.79 vs. $13.81 one year ago. CET 1 ratio of 10.3%.
    • Conference call at 8:30 ET.
    • Previously: Bank of America beats by $0.07, misses on revenue (April 15)
    • BAC flat premarket
  • Wed, Apr. 15, 7:08 AM
    • Bank of America (NYSE:BAC): Q1 EPS of $0.36 beats by $0.07.
    • Revenue of $21.42B (-5.9% Y/Y) misses by $80M.
    • Shares +0.19% PM.
    • Press Release
  • Tue, Apr. 14, 5:30 PM
  • Mon, Apr. 13, 10:02 AM
    • Doing a sum of the parts analysis, Morgan Stanley slaps a regional bank multiple on Bank of America's (BAC +0.7%) consumer/other businesses and Goldman's multiple on BofA's investment bank/trading business, and finds the value comes to $15.70 - roughly the same as the current price.
    • This means the wealth management division - which Morgan values at $4.84 per share - comes for free. Morgan notes BofA has generated the strongest AUM growth among its large-cap bank peers over the past couple of years - 14% CAGR vs. peer median of 11%. The division has also generated revenue CAGR of 6% and pre-provision operating profit CAGR of 12%.
    • What's holding BAC back? Regulation and uncertainty over capital returns, of course, along with interest rates - investors continue to wait for higher ones and BofA is considered the most rate-sensitive of the big banks.
  • Wed, Apr. 8, 11:19 AM
    • Diego De Giorgi and Karim Assef have been promoted to co-heads of global investment banking at Bank of America (NYSE:BAC). De Giorgi - who joined BofA in 2013 from Goldman - was previously co-head of corporate and Investment banking for EMEA. Assef - who has been with the bank for nearly 20 years - was previously global head of investment banking coverage.
    • The appointments, says the bank, are all about being able to serve clients and expand globally.
    • “We’ve got some growth still ahead of us in Latin America. We’ve already made a big investment there and will continue to do so,” says Assef.
    • Source: FT
  • Sun, Apr. 5, 8:29 AM
    • Merrill Lynch (NYSE:BAC) is shaking up the ranks of its 14,000 brokers with an apparent zero-tolerance approach to brokers who break key company rules.
    • Case in point: A top Indiana adviser with $1.3B in AUM was terminated in March without advanced warning. Merrill said it "lost confidence" in the adviser, ranked No.1 in his state on the closely-followed Barron’s Top Adviser rankings since 2010, for  “conduct including failing to discuss service level and pricing alternatives with a customer, providing inaccurate information to firm management during account reviews regarding this issue, mismarking bond cross-trade order tickets as unsolicited and providing information to a client during an active account review that did not correspond to the firm’s records.”
    • In the past, brokerages tended to giving second chances to top producers. The new, tougher approach is seen largely as a response to closer regulatory scrutiny of brokerages.
    • Securities lawyers agree this attitude is taking hold in the industry. Even small violations, such as poor record keeping or email retention, are drawing stricter penalties.
    • Source: WSJ
  • Thu, Apr. 2, 3:15 PM
    • The lawsuits by Deutsche Bank and BNP Paribas concern the multibillion dollar fraud at Taylor Bean & Whitaker Mortgage. At the center was Ocala Funding - a mortgage financing vehicle created in 2005 by Taylor Bean to purchase home loans and bundle them into MBS.
    • Taylor Bean founder Lee Farkas is now serving a 30-year prison term.
    • Terms of the settlements weren't announced, but Bank of America (NYSE:BAC) does say the BNP settlement won't be material to results.
    • Source: WSJ
  • Wed, Apr. 1, 4:33 PM
    • Looking for some kind of growth wherever they can find it, banks are about to get their wish as Fair Isaac is set to launch a new credit scoring metric which should expand by tens of millions the field of those eligible to get credit.
    • The new score will pull payment histories for things like utilities to calculate credit scores for consumers who might otherwise not have one. Other things - like how often someone changes address - will be used to help calculate a score.
    • FICO and 10 unnamed credit card issuers have been testing the new score since November, and Fair Isaac intends to roll things out nationwide by year-end. Right now, about 15M of the 53M previously unscorable Americans can be scored using the new system.
    • Source: WSJ
    • Among those of interest: WFC, C, BAC, JPM, COF, DFS, AXP
  • Mon, Mar. 30, 4:09 AM
    • Top European and U.S. banks axed 59,000 jobs last year as they restructured, cut costs and moved further into digital banking, Reuters reports.
    • The figure brings the total number of jobs lost across 24 banks in the last two years to 160,000.
    • Notables: Barclays (NYSE:BCS) shed 7,300 jobs last year due to a three-year plan to cut 19,000 staff; RBS (NYSE:RBS) slashed 10,000 employees as it sold overseas businesses and trimmed its investment bank further; JPMorgan (NYSE:JPM) and BofA (NYSE:BAC) also made substantial job cuts as they worked through troubled mortgages and refinanced loans at lower rates.
  • Fri, Mar. 27, 11:40 AM
    • "There is evidence of diseconomies of scale," writes longtime Bank of America (BAC -0.6%) bear Mike Mayo, arguing the lender would be worth 25% more if broken up.
    • "We do not see the downside for investors in supporting greater transparency," says Mayo, applauding the SEC's forcing the bank to allow a vote on a proposal calling for the spinoff of its investment banking operation.
    • Mayo notes recent accountability issues like BofA being the only U.S. lender called out by the Fed in its stress tests this year, and last year's $4B accounting boner, after which the bank was forced to suspend its capital return plans.
  • Fri, Mar. 27, 3:28 AM
    • Despite its revenues falling 6%, JPMorgan (NYSE:JPM) retained its crown as the top performing investment bank in 2014, according to industry analytics firm Coalition.
    • JPMorgan reaped $22B from investment banking last year, compared with $23.3B in 2013.
    • Other U.S. banks also continued to dominate top spots, with Goldman Sachs (NYSE:GS) coming second overall across investment banking, and Citigroup (NYSE:C) and BofA (NYSE:BAC) sharing third place with Deutsche Bank (NYSE:DB).
  • Thu, Mar. 26, 4:37 PM
    • The big banks have had a rough start to the year, but surging trading volume in bonds, currencies, and commodities in Q1 could make for pleasant surprises when the lenders report quarterly results next month, writes John Carney.
    • The average daily trading volume across all U.S. bonds was up 10.6% Y/Y through the end of February, according to Sifma, with trading in corporate bonds up 18.1%, driven by a big rise in issuance. Trading in Fannie, Freddie, and Ginnie MBS was up 35.3% from a year ago.
    • Goldman Sachs (NYSE:GS) could be a particular beneficiary, as about 25% of its revenue is generated by FICC, and Credit Suisse sees the bank posting its first year-over-year increase in that unit's revenue since 2009.
    • Others of interest: Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC), Citigroup (NYSE:C), and JPMorgan (NYSE:JPM).
  • Fri, Mar. 20, 12:21 PM
    • Stockholders (or groups of stockholders up to 20) who own stakes of 3% or higher for at least three years will be allowed to nominate directors, under changes to Bank of America (BAC +1.5%) bylaws announced today.
    • So-called "proxy access" is a hot new trend this year, and BofA is the latest large company to come along.
    • SEC Form 8-K
  • Thu, Mar. 19, 1:56 AM
    • Bank of America (NYSE:BAC) must allow shareholders to vote on a proposal that calls for the company to consider spinning off its investment banking business, following a ruling from U.S. regulators stating it couldn't exclude the proposal from its corporate ballot.
    • The March 17 decision by the SEC will put the proposal on the bank's proxy statement, allowing shareholders to vote on it at BofA's annual meeting.
  • Wed, Mar. 18, 2:41 PM
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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.