A Profitable Second Quarter For The Second-Largest U.S. Bank - Report on Bank Of America

Jul 30, 2015, 09:00 ET from www.aciassociation.com

NEW YORK, July 30, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Bank of America Corporation (NYSE: BAC). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=BAC

Highlights from our BAC Report include:

  • Investors Cheer a Solid Quarter - Many investors may have assumed that Bank of America's (BOA) ability to improve its results would depend on a more favorable interest-rate environment, but its second-quarter results on Wednesday Morning, July 15, 2015, appeared to demonstrate that it can make progress even otherwise, stated an article on WSJ. Diluted EPS more than doubled to $0.45, from $0.19 reported in the corresponding quarter last year, and significantly higher than the previous quarter EPS of $0.27. Share prices closed up 3.21% on Wednesday.
  • Continued Business Momentum - Consumer Banking Deposits (EOP) were up 6% YoY to $547 billion, while global banking loan balances (EOP) were up 7% YoY to $307 billion. Residential mortgage and home equity loan originations were up by a solid 40% YoY to $19.2 billion. Further, BOA issued 1.3 million credit cards during the quarter, recording the highest level since Q3 2008.
  • Sustained Progress on Expense Management - Noninterest expense, excluding litigation was down 6% YoY to $13.6 billion, while legacy assets and servicing noninterest expense, excluding litigation, decreased 37% YoY to $0.9 billion.
  • Strong Credit Quality & Impressive Returns: BOA informed that the number of 60 plus days delinquent first mortgage loans serviced by Legacy Assets and Servicing declined 50% YoY to 132,000 Loans. Also, return on common equity rose to 8.75% from 3.68% a year ago, the second-best return since Brian Moynihan became chief executive in 2010, according to WSJ.
  • Record Capital Levels and Healthy Liquidity Positions - The Common equity tier 1 capital ratio under the Basel 3 Standardized Transition approach was 11.2% at June 30, 2015 and 11.1% at March 31, 2015. At June 30, 2015, the estimated supplementary leverage ratio (SLR)(N) for the Bank Holding Company was approximately 6.3%, which exceeded the 5.0% minimum for bank holding companies, and the estimated SLR for the company's primary banking entity was approximately 7.0% at June 30, 2015, which exceeded the 6.0% "well capitalized" level.

To find out how this influences our rating on Bank of America Corporation, read the full report in its entirely here: http://www.aciassociation.com/?c=BAC

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