Bank of America is a good value after a powerful income?
The bank had a great branch despite the difficult environment.
Bank of America (NYSE: BAC) Stocks rose 4% as the second largest bank in the United States estimated the first quarter with estimates on Tuesday.
Like other big banks, Bank of America has seen market volatility caused by market volatility that investors and traders move around.
But Bank of America has also gained significant increase from consumer bank ARM. Due to the high loan, net interest income increased 3%, but the deposit costs were lowered.
Overall, sales rose 6.2% year -on -year to $ 27.4 billion. Net profit rose 10.4% to $ 7.4 billion, and imports increased 18% year -on -year to 90 cents per share. This exceeded the estimated 82 cents per share.
Bank of American Chairman and CEO Brian Moynihan said, “We had a good first quarter in the first quarter of last year, when the income of $ 0.90 to $ 0.90 last year, which was $ 0.76 to $ 0.90, reflected the growth of net interest income and commission income, while sales and transactions were 12 year -on -year year -on -year year -on -year year -on -year year It provided the first consecutive sales growth.
Transaction income has been released all banks.
All big banks have been released so far, including Citigroup (NYSE: C), Morgan Stanley (NYSE: MS), JPMORAN CHASE (NYSE: JPM) and Goldman Sachs (NYSE: GS).
Bank of America is no exception, with sales and transaction revenue in Global Markets Division, an 11% increase in quarterly. This accounted for 86%of the $ 6.6 billion sales in the global market. Fixed imports, currencies and commodities (FICC) transactions increased by 8% to $ 3.5 billion, while stock transaction income increased 17% to $ 2.2 billion. The net profit of this business has increased to $ 19.5 billion, up 13%.
The global market has led to an increase in quarterly bank imports because other sectors have flattened or slightly fell. Global banking, including investment banks, saw a reduction of 4%, but assets and investment management were essentially flat.
Consumer banks’ net profit fell compared to the previous year, but there was a bright place of Bank of America.
Consumer bank revenue increases
Due to credit loss and non -interest costs, net profit was low in consumer banks, but Bank of America’s sales increased to $ 15 billion in this business.
Among all major banks, Bank of America is a welcome development because the rate of revenue in consumer banks is high.
The bank’s loan balance increased 2%, but the deposit rate was lowered to help increase net interest income. In addition, the company added 250,000 new inspection accounts and increased the amount of deposit balance to $ 2 trillion, an increase of 3%. It is too big and dominant, so you can provide lower deposit charges than competitors.
Overall, the bank produced a net interest income of $ 14.4 billion in the quarter, accounting for about half of the total revenue. It was 3% higher than the same quarter a year ago.
CFO Alistair Borthwick said, “We have grown to nearly $ 2 trillion in a consecutive average deposit in July, while asset quality reflects the lenders of many years, while strong capital and liquidity levels have supported customers’ growth and returns $ 6.5 billion to shareholders.
Bank of America purchase?
The Bank of America stock is now reduced in the value of the value of the value, 11 P/E is 11 and forward P/E is about 9.
Targets have a lot of uncertainty, so if the economy slows down, there may be short -term effects. Again, lowering the interest rate can accelerate the loan activity.
The bank also built capital and liquidity to withstand potential stagnation. In addition, it has a good diversification with the asset management business, which may not be affected by the economic downturn.
Overall, Bank of America shares have decreased 13% of YTD, but have a significant increase. Analysts have an average price target of $ 50 per share, suggesting 30% increase over the next 12 months.
In this low evaluation, the Bank of America stock is likely to wear radar.
