Post-Earnings Research - Bank of America

LONDON, January 21, 2015 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings research on Bank of America Corp. (NYSE: BAC). On January 15, 2015, the company reported its financial results for Q4 FY14 and full year FY14 (period ended December 31, 2014). Click on http://get.Investor-Edge.com/pdf/?c=Bank%20of%20America&d=21-Jan-2015&s=BAC to read our free earnings review on Bank of America Corp. (Bank of America). During Q4 FY14, the company reported net income of $3.05 billion, or $0.25 per diluted share on total revenue, net of interest expense, on a fully taxable-equivalent (FTE) basis (a non-GAAP financial measure) of $18.96 billion. CEO of Bank of America, Brian Moynihan, said that during Q4 FY14 consumer deposits and loan originations were solid; wealth management client balances grew to $2.5 trillion; the company increased lending to middle-market and large companies; and it retained a leadership position in investment banking. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=Bank%20of%20America&d=21-Jan-2015&s=BAC

Earnings Overview 

During Q4 FY14, Bank of America's total revenue, net of interest expense, on FTE basis fell by $2.75 billion from $21.70 billion in Q4 FY13. The company's total revenue, net of interest expense, on FTE basis during Q4 FY14 came below Bloomberg analysts' forecast of $21.03 billion. In Q4 FY14, Bank of America reported net interest income, on FTE basis fell to $9.87 billion, compared to $11.00 billion in Q4 FY13. Further, noninterest income in Q4 FY14 stood at $9.09 billion, compared to $10.70 billion in Q4 FY13. Meanwhile, the company's noninterest expense declined from $17.31 billion in Q4 FY13 to $14.20 billion in Q4 FY14, the lowest quarterly expense reported by the company since the Merrill Lynch merger. Bank of America's credit quality also continued to improve, as the provision for credit losses declined from $336 million in Q4 FY13 to $219 million in Q4 FY14. The free research on BAC can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Bank%20of%20America&d=21-Jan-2015&s=BAC

Chief Financial Officer of Bank of America, Bruce Thompson, said that in Q4 FY14 credit quality remained strong, reflecting the improving economy and the company's solid risk underwriting.

In Q4 FY14, Bank of America's net income decreased by $0.39 billion, or $0.04 per diluted share, from $3.44 million, or $0.29 per diluted share, in Q4 FY13. Analyst at Bloomberg had expected the company to report net income of $3.76 billion, or $0.31 per diluted share, in Q4 FY14.

Bank of America's total revenue, net of interest expense, on FTE basis in FY14 fell to $85.12 billion from $89.80 billion in FY13. The company's total revenue, net of interest expense, on FTE basis in FY14 fell short of Bloomberg analysts' forecast of $86.56 billion. In FY14, the company's net interest income on FTE basis came at $40.82 billion, compared to $43.12 billion in FY13. Noninterest income for FY14 stood at $44.30 billion, compared to $46.68 billion in FY13. Further, noninterest expense in FY14 was $75.12 billion compared to $69.21 billion in FY13. Excluding litigation expense of $16.4 billion in FY14 and $6.1 billion in FY13, noninterest expense was down $4.4 billion, or 7% Y-o-Y, to $58.7 billion in FY14. Sign up and read the free analyst's notes on BAC at:

http://get.Investor-Edge.com/pdf/?c=Bank%20of%20America&d=21-Jan-2015&s=BAC

In FY14, Bank of America's net income declined to $4.83 billion, or $0.36 per diluted share, from $11.43 billion, or $0.90 per diluted share, in FY13. Bloomberg analysts had expected the company to report net income of $5.23 billion, or $0.43 per diluted share, in FY14.

As on December 31, 2014, the common equity tier 1 capital ratio under the Basel 3 Standardized Transition approach for measuring risk-weighted assets was 12.3%. Further, the estimated supplementary leverage ratio (SLR) for the Bank Holding Company was approximately 5.9%, exceeding the minimum requirement of 5.0% for bank holding companies, and the estimated SLR for the company's primary banking entity was approximately 7.0%, exceeding the minimum requirement of 6.0%. Visit Investor-Edge and access the latest research on BAC at:

http://get.Investor-Edge.com/pdf/?c=Bank%20of%20America&d=21-Jan-2015&s=BAC

Stock Performance 

On the day of the earnings release, January 15, 2015, Bank of America's stock ended the session at $15.20, declining 5.24% for the day. Further, on the last close, Tuesday, January 20, 2015, it finished at $15.26, 0.78% below its previous day's closing price of $15.38. The stock vacillated between $15.20 and $15.63 during the session. A total of 122.97 million shares were traded, which was much above its three months average volume of 76.39 million shares. Over the previous three trading sessions and last one month, the company's shares have fallen by 4.86% and 13.39%, respectively. Further, the stock has lost 10.29% in the past one year. Shares in Bank of America are trading below their 50-day and 200-day moving averages of $17.21 and $16.21, respectively. Additionally, the stock traded at a PE ratio of 10.59 and has a Relative Strength Index (RSI) of 27.41.

Sneak Peek to Corporate Insider Trading 

In the last one month Bank of America has reported only one insider transaction to the U.S. Securities and Exchange Commission (SEC). On January 14, 2015, Brian Moynihan sold 18,780 shares of the company, at a price of $16.04 per share, aggregating to a total value of $301,231. Complimentary in-depth research on BAC is available at:

http://get.Investor-Edge.com/pdf/?c=Bank%20of%20America&d=21-Jan-2015&s=BAC

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