30.40 +0.67 (2.25%)
Pre-Market: 7:54AM EDT
|Bid||29.50 x 1100|
|Ask||30.42 x 45100|
|Day's Range||29.11 - 30.24|
|52 Week Range||22.66 - 31.17|
|Beta (3Y Monthly)||1.64|
|PE Ratio (TTM)||10.58|
|Earnings Date||Oct 16, 2019|
|Forward Dividend & Yield||0.72 (2.47%)|
|1y Target Est||32.78|
Bank of America overcame a slower US economy, lower interest rates, and uneven markets to deliver better than expected profits in the third quarter of this year led by very strong investment banking fees performance. Choppy markets left the bank’s fixed-income trading businesses with flat revenues, but equities trading took up some of the slack, rising 13 per cent, better than rivals Citigroup, Goldman Sachs, and JPMorgan Chase, which reported results on Tuesday. Investment banking fees beat those rivals by an even wider margin, rising 27 per cent, as underwriting, advisory and syndication fees all showed strong growth.
Shares of Bank of America Corp. rose 1.8% in premarket trading Wednesday, after the bank reported a third-quarter profit that fell less than expected, while revenue surprisingly increased, as consumer and global banking and wealth and investment management revenue increased to offset a slight decline in global markets revenue. Net income fell to $5.78 billion, or 56 cents a share, from $7.17 billion, or 66 cents a share, in the year-ago period. Total revenue rose to $22.81 billion from $22.72 billion, while the FactSet consensus was for a decline to $22.58 billion. Net interest income grew to $12.19 billion from $12.06 billion, above the FactSet consensus of $12.15 billion, and non-interest income slipped to $10.62 billion from $10.66 billion but topped expectations of $10.38 billion. Average loans rose 5% to $9 billion, driven by residential mortgages. Equities revenue grew 13% to $1.1 billion, helped by growth in client financing activities, while fixed income, currency and commodities revenue was flat at $2.1 billion as improvement in mortgages and municipal products was offset by weaker trading in FX and credit products. The stock has gained 2.6% over the past three months through Tuesday, while the Dow Jones Industrial Average has slipped 1.1%.
The lender's shares were up 1.6% in premarket trading as consumer banking showed strength, helping it ride out uncertainties in global financial markets. "In a moderately growing economy, we focused on driving those things that are controllable," Chief Executive Brian Moynihan said in a statement. Consumer banking revenue rose 3% to $9.7 billion, while its trading business delivered a solid quarter, driven mainly by a strong performance from equities trading, which rose 13% to $1.1 billion.
Bank of America earnings topped third-quarter views. Bank of America stock neared a buy point after trying to break out Tuesday.
Brexit News Changing By the Hour As Clock Ticks Down, Again Brexit deal, or no Brexit deal, that is the question. Nobody knows the answer, but the news stories just keep coming, with every new one contradicting the last. The latest is that there is no deal, as assessments from unspecified political experts are “gloomy”. […]The post Market Morning: Brexit Back'n'Forth, Carrie Lam Booed Off Stage, Buffett Wants BofA, Balkman Blunders appeared first on Market Exclusive.
Bank of America reported its third-quarter 2019 financial results today. The news release, supplemental filing and investor presentation can be accessed in the following ways:
Investing.com -- Bank of America's (NYSE:BAC) profit fell in the third quarter, hit by a $2.1 billion impairment charge to its merchant services joint venture. The charge darkened a set of earnings that were otherwise ahead of expectations, with underlying revenue rising in both the commercial and the investment banking divisions, along with a 7% gain in retail loans.
Bank of America posted stronger-than-expected third quarter earnings Wednesday as revenues from its investment banking business, as well as a modest increase in net interest income, drove bottom line gains.
Investing.com - U.S. futures dipped on Wednesday as doubts lingered over a partial deal between the U.S. and China, while Bank of America's earnings came in a little ahead of expectations.
Investing.com - Bank of America (NYSE:BAC) reported third quarter earnings that beat analysts' expectations on Wednesday and revenue that topped forecasts.
Investing.com -- Bank of America (NYSE:BAC) leads a parade of more financial earnings, after JPMorgan (NYSE:JPM) stood out among a mediocre set of results from Wall Street on Tuesday. Drug wholesalers are in talks to settle opioid-related claims for $18 billion, while the hoped-for Brexit deal has hit a roadblock. Here's what you need to know in financial markets on Wednesday, 16th October
Warren Buffett's Berkshire Hathaway Inc is seeking permission from the Federal Reserve to boost its stake in Bank of America Corp above the 10% level, according to an application document provided by the Fed on Tuesday. Bloomberg first reported the application on Tuesday. Shares of BofA gained 3% after the report came out, dipping slightly to close at 2.02%.
(Bloomberg) -- Yandex NV, often referred to as “Russia’s Google,” has become the latest victim of recent moves by some of the world’s largest economies to engage in rounds of protectionism.The Russian Internet search company lost 16% of its market value on Friday after the Kremlin endorsed a draft law that would limit foreign ownership in major Russian technology firms. The plunge attracted the attention of at least two Wall Street banks, which rushed to Yandex’s defense, writing that the stock was now an attractive opportunity. Shares of Yandex have added back nearly 2% over the past two sessions in New York trading.On Monday, Bank of America defended Yandex, saying that the stock’s slide created a “particularly attractive buying opportunity,” as Yandex could work around the foreign capital limit by creating a new class of shares and dissolving shareholders’ stakes.While the bill seeks to limit foreign capital in “significant information resources” by 20%, Bank of America analyst Cesar Tiron said in a note that Yandex could convert a class B share into an A or C share. And last week, a UBS analyst said the market reaction was “overdone” because the negatives from the proposal “look limited.”The move from Russia, which could take effect starting Jan. 1, comes amid reports that the Trump administration is weighing the de-listing of some Chinese stocks. That would come as part of a broader protectionist push by the White House to limit U.S. investment portfolio flows into China in its continued trade war with the world’s second-largest economy.“The economic model that seems to be behind these policies is that of a world economy that works as a zero-sum game: If Russia wins, the U.S. loses and vice-versa,” said Graciela Chichilnisky, a Columbia University economics professor.A Citigroup analyst said in a report that the Russian internet bill is “certainly a worrying development for Yandex, one that inevitably overshadows operational momentum.”Chichilnisky said that one of the insights of free-market economics is to show that the world economy is not always a zero-sum game, and that groups of nations can benefit from trade, “not always, but on a number of occasions and in a number of ways.”The Russian bill and the U.S. trade war “arises from a zero-sum perspective on the world economy -- perhaps even a negative sum game -- where both traders lose,” Chichilnisky said.To contact the reporter on this story: Anisha Sircar in New York at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Scott Schnipper, Jeremy R. CookeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Over the past few days, we've seen several bullish bets suggesting that Bank of America stock could keep climbing higher after earnings tomorrow.
Bank of America Corp (NYSE: BAC) shares traded higher on Tuesday but remain down slightly overall in the past six months after global economic uncertainty prompted the Federal Reserve to begin cutting interest rates. Sellers are concerned about Bank of America’s ability to maintain net interest margins as yield curves flatten. Despite the price weakness, some large options traders are making some big bets on Bank of America ahead of the company’s earnings report expected out on Wednesday morning.
Shares of Bank of America Corp. rallied 2.7% in afternoon trading, after Bloomberg reported that Warren Buffett's investment vehicle Berkshire Hathaway Inc. has asked the Federal Reserve for permission to boost its stake to above the 10% level, as holding a stake of more than 10% often triggers a regulatory review. Berkshire Hathaway is Bank of America's largest shareholder, with 950 million shares, or 10% of the shares outstanding, according to FactSet. The stock's rally comes a day before the bank is scheduled to report third-quarter results, before the stock market's opening bell. The stock has tacked on 2.4% over the past three months, while the SPDR Financial Select Sector ETF has slipped 0.1% and the Dow Jones Industrial Average has eased 1.1%.
(Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. is seeking permission from the Federal Reserve to potentially increase its stake in Bank of America Corp. to more than 10%, a level that often triggers a regulatory review. The bank’s shares rallied.Berkshire, which disclosed in July that it had hit that threshold, filed an application with the Fed in recent weeks making a variety of assurances to show that it will passively invest in the bank, according to a copy of the application provided by the regulator.Berkshire “may decide to purchase additional shares of common stock of Bank of America based on its evaluation of the investment opportunity presented by such purchases,” the conglomerate wrote in the filing signed by Buffett, without specifying how many shares it might look to purchase.Buffett struck a deal eight years ago to invest $5 billion in Bank of America for preferred stock and warrants, helping shore up confidence in the lender as it faced losses tied to subprime mortgages. In 2017, the billionaire investor swapped the preferred shares for a $16 billion-plus common-stock holding. Bank of America now ranks as Berkshire’s second-largest equity bet, behind Apple Inc.Bank of America shares climbed as much as 3.8% after the news of the filing. They were up 2.7% at 1:37 p.m. in New York. The lender is set to report third-quarter results Wednesday.Buffett’s company said in the Fed filing that it doesn’t have any plans to sell Bank of America’s assets, merge it with any company or make any other significant change in its business strategy and corporate structure.“We have appreciated Berkshire’s ownership for the past seven-plus years,” Bank of America said in a statement. “Through our success, Berkshire and other long-term shareholders have benefited. We look forward to Berkshire’s support as we continue to drive responsible growth at Bank of America.”Berkshire said as of July 17 that the holding was 950 million shares, a stake that would be valued at more than $27 billion as of Monday’s close. While Berkshire had been building its stake in Bank of America in recent years, the bank’s stock repurchases also helped push the Omaha, Nebraska-based conglomerate’s stake above the 10% level, according to the July regulatory filing.U.S. regulators tend to review relationships between investors and banks in which a shareholder could be viewed as having control over a lender. According to proxy statements and quarterly regulatory filings, the only other investor in one of the six largest U.S. banks that tops the 10% threshold is Mitsubishi UFJ Financial Group Inc.’s 24% holding in Morgan Stanley, a remnant of the financial crisis.With about $200 billion of total equity investments to manage, it’s not the first time Buffett has bumped up against the ownership threshold. In 2016, he ran up against the 10% level with another bank, Wells Fargo & Co, as it repurchased shares. Berkshire applied to the Fed, but later said it would cut its Wells Fargo stake because the central bank said the larger stake would limit Berkshire’s ability to do business with the lender.With Berkshire’s American Express Co. stake, Buffett agreed in the 1990s to be a passive shareholder and later received approval to increase that investment to as much as 24.99%, a level he has yet to reach.The rules that determine whether an investor is deemed to have control over a bank may soon change. The Fed has submitted a proposal to clarify the factors and thresholds that determine control.(Adds BofA comment in seventh paragraph, updates share price in fifth.)\--With assistance from Lananh Nguyen, Daniel Taub and David Scheer.To contact the reporter on this story: Katherine Chiglinsky in New York at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Dan ReichlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Bloomberg first reported the application on Tuesday. Shares of BofA gained 3% after the report came out, dipping slightly to close at 2.02%. Berkshire, which has a 9.96% stake in BofA, filed an application with the Fed this month, assuring the regulator that it will passively invest in the bank and will not try to force a change in strategy or corporate structure.
The Zacks Analyst Blog Highlights: Cisco Systems, SAP, Gilead Sciences, Bank of America and Caterpillar
Rise in fixed income trading income and underwriting fees support JPMorgan's (JPM) Q3 earnings. Yet, lower interest rates, dismal loan growth and lower advisory fees act as headwinds.
Warren Buffett’s Berkshire Hathaway is reportedly seeking permission from the Federal Reserve to boost its stake in Bank of America above the 10% level. Yahoo Finance’s Myles Udland, Brian Sozzi and Dan Roberts discuss on The Final Round.