During Wednesday’s Morning trade, Shares of Bank of America Corporation (NYSE:BAC), gained 2.45% to $15.90.
The stock has the beta value of 1.82, and its volatility for the week is 1.72%, while for the month it is 2.02%. The company has the market capitalization of $162B. The company holds the book value per share of 21.87, whereas cash per share is 58.58. Price to book ratio remained 0.71, while price to sale ratio is 3.23. Analysts mean recommendation for the stock is said to be 1.90 (where 1=Buy, 5=sale).
In latest news, Bank of America Corporation, stated net income of $4.5 billion, or $0.37 per diluted share, for the third quarter of 2015, contrast to a net loss of $232 million, or $0.04 per share, in the year-ago period.
“We saw solid results this quarter by ongoing to execute our long-term strategy,” said Chief Executive Officer Brian Moynihan. “The key drivers of our business — deposit taking and lending to both our consumer and corporate clients — moved in the right direction this quarter and our trading results on behalf of clients remained fairly stable in challenging capital markets conditions. Our balanced approach to serving customers and clients is on track as the economy continues to move forward.”
Revenue, net of interest expense, on an FTE basis, was $20.9 billion(G), down $521 million from the third quarter of 2014. This was largely driven by higher negative market-related adjustments on the company’s debt securities portfolio due to lower long-term interest rates, partially offset by higher positive net debit valuation adjustments (DVA), contrast to the year-ago quarter. The current quarter comprised $597 million in negative market-related adjustments and $313 million in positive net DVA.
Net interest income, on an FTE basis, was $9.7 billion in the third quarter of 2015, down 7 percent, or $702 million, from the year-ago quarter. Not Taking Into Account the impact of market-related adjustments, net interest income was $10.3 billion in the third quarter of 2015, contrast to $10.0 billion in the prior quarter and $10.5 billion in the year-ago quarter(G). The decline from the third quarter of 2014 was driven by lower consumer loan balances and lower yields, partially offset by commercial loan growth and lower long-term debt balances.
Noninterest income was up 2 percent, or $181 million, from the year-ago quarter to $11.2 billion. Results for the most recent quarter reflected year-over-year improvements in mortgage banking and card income, higher asset administration fees and other income, partially offset by lower capital markets revenue and lower equity investment income.The provision for credit losses raised $170 million from the third quarter of 2014 to $806 million. Net charge-offs were $932 million in the third quarter of 2015, contrast to $1.1 billion in the second quarter of 2015 and $1.0 billion in the third quarter of 2014. The net charge-off ratio improved to 0.42 percent in the third quarter of 2015 from 0.46 percent in the year-ago quarter. The decline in net charge-offs was driven primarily by an improvement in consumer portfolio trends, partially offset by higher commercial charge-offs. The net reserve release was $126 million in the third quarter of 2015, contrast to a net reserve release of $407 million in the third quarter of 2014.
Noninterest expense declined $6.3 billion, or 31 percent, from the third quarter of 2014 to $13.8 billion. Not Taking Into Account litigation expense of $231 million in the third quarter of 2015 and $6.0 billion in the year-ago quarter, noninterest expense reduced 4 percent from the year-ago quarter to $13.6 billion, reflecting lower Legacy Assets and Servicing (LAS) expense(A). Continued cost administration 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.
Business Highlights
- Average deposit balances raised $34.3 billion, or 7 percent, from the year-ago quarter to $548.9 billion.
- The company originated $13.7 billion in first-lien residential mortgage loans and $3.1 billion in home equity loans in the third quarter of 2015, contrast to $11.7 billion and $3.2 billion, respectively, in the year-ago quarter.
- Client brokerage assets raised $8.7 billion, or 8 percent, from the year-ago quarter to $117.2 billion, driven primarily by strong account flows, partially offset by lower market valuations.
- The company issued 1.3 million new consumer credit cards in the third quarter of 2015, up from 1.2 million cards issued in the year-ago quarter.
Bank of America Corporation is a bank holding company. The company, through its auxiliaries, operates through Consumer and Business Banking; Consumer Real Estate Services; Global Wealth and Investment Administration; Global Banking; Global Markets; and Other segments. It’s Consumer and Business Banking segment offers a range of credit, banking, and investment products and services counting traditional and money market savings accounts, CDs and IRAs, noninterest- and interest-bearing checking accounts, investment accounts and products, and credit and debit cards.
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