Bank of America has a one year low of $14.60 and a one year high of $18.48.
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The company has price-to-cash ratio of 0.26 and EPS ratio of 0.94.
When CLSA analyst Mike Mayo asked if the bank had a “Plan B” in case rates stay low “for a lot longer than you expected”, Mr. Moynihan replied that the bank was keeping core expenses flat even while spending more to prepare for the stress test and to shrink the bank.
Bank of America (NYSE:BAC) issued its quarterly earnings data on Wednesday.
Mr. Moynihan has said he would trim the trading unit if results don’t improve, though he wants the investment banking business, which serves corporate clients, to grow along with customers. At this time past year, the bank had set aside $16 billion, obscuring the underlying earnings. The bank’s top line ($20.8 billion) fell on sequential and year-over-year bases by 6.5% and 2.5%, respectively.
The bank reported net income of $4.5 billion in the results.
Net income at consumer banking clocked in at $1.8 billion, which is an increase of 5% YoY. The Company is a financial institution, serving individual consumers, small and middle market businesses, institutional investors, large corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services.
Credit loss provision totaled $806 million in the quarter, up from $636 million in the same period a year ago. The bank also raised its tangible book value per share by $0.48 to $15.50. On that day, the company will hold a conference call and live webcast at 4:30 p.m. ET to review and discuss the company’s business highlights and results for the third quarter ended September 30, 2015. The decline in net charge-offs was driven primarily by an improvement in consumer portfolio trends, partially offset by higher commercial charge-offs. The third-quarter 2015 reserve release of $126 million compared with the year-ago total of $407 million.
The No. 2 USA bank by assets said its non-interest expenses declined 31 percent to $13.81 billion United States in the third quarter. Legal expenses fell to $231 million from $6 billion a year ago, when the bank had to pay the record $16.65 billion settlement with the Justice Department. Continued cost management efforts allowed the company to continue to invest in growth opportunities while keeping expenses relatively flat from the prior quarter.
The effective tax rate for the third quarter of 2015 was 26 percent, which comprised benefits related to the restructuring of certain non-U.S. auxiliaries. The Financial Select Sector SPDR ETF (XLF), which represents the financial sector, has lost 6.0% on a YTD (year-to-date) basis. “SELL” signal was issued by 2 analysts.
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Much like the securitized subprime mortgage paper that caused Bank of America headaches in 2008, a few have reported that securitized credit card debt has the potential to cause Bank of America future headaches, reports Credit Cards.
