Banking, finance, and taxes
Bank of America Joins Major Banks Beating Estimates
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Bank of America Corporation (NYSE: BAC) has joined the money-center banks in beating earnings expectations. Excluding items, Bank of America earnings came to $0.19 per share and revenue was $21.97 billion. We had a Thomson Reuters consensus of $0.14 per share on $22.8 billion.
Bank of America saw a continued improvement in loan losses and cost cutting measures, and the results compare very favorably to a huge loss and revenue write-down from a year ago. Bank of America said that provisions for credit losses were the lowest since the first quarter of 2007 as its credit quality continues to improve. The bank posted a record Tier 1 common capital ratio of 11.24% under Basel 1, which is 46 basis points higher than in the first quarter. Its Tier 1 common capital ratio under Basel III is estimated at 8.10%.
We have said over and over that book values remain a ceiling rather than a floor for now, and the $8 or so share price compares to the following:
Bank of America shares are trading up 1.4% at $8.04 in active premarket trading.
JON C. OGG
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