Is It Time to Take Profits on Bank of America After Earnings?

By Chris Lange Updated Jan 30, 11:11AM EST · Published Jan 15, 10:25AM EST

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Is It Time to Take Profits on Bank of America After Earnings? — © 4kclips / Shutterstock.com

When Bank of America Corp. (NYSE: BAC | BAC Price Prediction) 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:

Consumer Banking saw its total revenues decrease by 4.5% year over year to $9.51 billion.
Global Wealth and Investment Management total revenues fell 2.5% to $4.91 billion.
Global Banking revenues shrank 0.6% to $5.14 billion.
But Global Markets revenue increased 5.5% to $3.43 billion.

Book value per share was $27.32 at the end of the quarter, while tangible book value per common share was $19.41.

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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.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.