Banking, finance, and taxes
Is It Time to Take Profits on Bank of America After Earnings?
Published:
Last Updated:
When Bank of America Corp. (NYSE: BAC) reported its fourth-quarter financial results before the markets opened on Wednesday, it posted $0.74 in earnings per share (EPS) and $22.30 billion in revenue. That compared with consensus estimates of $0.68 in EPS and $22.35 billion in revenue, as well as the $0.70 per share and $22.89 billion reported in the same period of last year.
During the most recent quarter, average loan and lease balances in business segments rose $54 billion, or 6%, to $936 billion. Average deposit balances rose $65 billion, or 5%, to $1.4 trillion.
Overall credit quality remained strong across both the consumer and commercial portfolios, with the provision for credit losses at $941 million, an increase of $36 million last year.
In terms of its segments, the bank reported as follows:
Book value per share was $27.32 at the end of the quarter, while tangible book value per common share was $19.41.
Brian Moynihan, board chair and chief executive, commented:
In a steadily growing economy marked by solid client activity, our teammates produced another strong quarter and year, allowing us to increase investments in our customers, communities, and employees, while keeping a close eye on expenses. We also delivered for shareholders in 2019 by returning a record $34 billion in excess capital through dividends and share repurchases. As evidenced by a quarter in which our customer deposits surpassed $1.4 trillion and client balances in our wealth management business topped $3 trillion, we enter 2020 with momentum.
Shares of Bank of America traded down about 2% on Wednesday, at $34.65 in a 52-week range of $26.21 to $35.72. The consensus price target is $36.88.
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.