2024-06-07 14:06:55 ET
Summary
- Bank of America, together with other major retail banks, has outperformed both the S&P 500 and the S&P Banks index over the past year.
- Currently, BAC is exhibiting a trend of lower NII from a year ago, but non-interest income has picked up again, primarily due to higher S&T and IB activities.
- Charge-offs have been increasing from previous quarters due to higher delinquency rates in credit cards, coupled with the credit crisis in the commercial real estate space.
- Based on a dovish monetary policy that will likely reduce the cost of funding and a DDM model with an elevated margin of safety, I assign BAC a buy rating.
Bank of America ( BAC ) is one of the major retail banks in the US , and through their four business segments, they managed to generate $93.359 billion in TTM revenue, $25.028 billion in net income, and a consolidated amount of $293.552 billion in total equity. This resulted in a market cap of $312.50 billion and a 2.35% TTM dividend yield. ...
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Bank of America: Still Undervalued Despite A Great YTD Performance