- 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.
BACBank of America Corp
$41.380.43%
Edge Rankings
Momentum75.48
Growth68.84
Quality18.33
Value-
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