- Bank of America Corp BAC shares are up 2% Tuesday morning following its solid first quarter results that surpassed the Street view.
- BAC reported a first-quarter FY23 net income increase of 15% year-over-year to $8.2 billion.
- EPS for the quarter was $0.94, compared to $0.80 in 1Q22, beating the consensus of 0.82.
- Segment Net income: Consumer Banking $3.1 billion (+4% Y/Y), Global Wealth and Investment Management $917 million (-19% Y/Y), Global Banking $2.6 billion (+48% Y/Y), and Global Markets $1.7 billion (+6% Y/Y).
- Revenue increased 13% Y/Y to $26.3 billion, beating the consensus of $25.13 billion.
- Q1 Net interest income was $14.4 billion (+25% Y/Y), driven primarily by benefits from higher interest rates and solid loan growth. Noninterest income was $11.8 billion (+1% Y/Y).
- Provision for credit losses $931 million, compared to $30 million in 1Q22 and $1.09 billion in 4Q22.
- The efficiency ratio for the quarter was 62%, compared to 66% in 1Q22.
- Also Read: Bank Of America Charges Higher In Tandem With JPMorgan, Citigroup: A Technical Analysis
- The bank reported a CET1 ratio of 11.4%, up 14 bps vs. 4Q22. Book value per share of $31.58 improved by 3% from 4Q22.
- Average loan and lease balance $1 trillion (+7% Y/Y) led by solid commercial loan growth and higher credit card balances. Average deposits down 7% Y/Y to $1.9 trillion.
- "Asset quality remained strong with net charge-offs, while normalizing, still below pre-pandemic levels. We maintained strong liquidity, ending the quarter with $904 billion of Global Liquidity Sources. Regulatory capital improved to $184 billion, and our CET1 ratio is nearly 100 basis points above our current minimum requirements. Capital strength allowed us to return $4 billion back to shareholders, and we continued to invest in our people and businesses," commented Chief Financial Officer Alastair Borthwick.
- Before the release of the Q1 results, Barclays lowered its price target for Bank of America from $48 to $39 while maintaining an Overweight rating on the shares.
- JPMorgan also lowered the price target on Bank of America to $34 from $38 while maintaining an Overweight rating on the shares.
- Price Action: BAC shares are trading higher by 2.04% at $30.99 premarket on Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
