Highlights:
- Net income: $4.9B (+40% from Q2, -15% YOY), net revenue: $20.3B (-9% from Q2, -11% YOY)
- Actual earnings/share: $0.51 (beats analysts est. $0.44)
- Interest-driven income is down (-17%), as is non-interest income (-4%)
Report says non-interest income is a mixed bag from contributing revenue streams. Consumer fees are down, but results of trading and investment banking are up.
Business loan and lease balances are up (+3%), as are deposits (+23%). Business/loans leases balances are at $950B, while consumer balances are at $1.7T.
CET1 value is at $173.2B (ratio of 11.9% vs. required 9.5%).
Other thoughts:
- BoA derives less nominal income from all sectors that I was interested in (consumer and commercial banking, investment banking and wealth management). I suppose this would be expected from a ‘smaller’ bank.
- Marginally less of BoA’s total revenue comes from consumer banking (40%) compared to JPM (42%). This was actually contrary to the heuristic I had previously used.
I want to do some more reading before commenting on the state of commercial and investment banking, wealth management, and other revenue streams beyond their self-provided highlights. They use some slightly different terminology (e.g. I think BoA’s “global banking” is synonymous with JPM’s “commercial banking”, but I want to do some more research to make sure).
The bank seems okay, but not as well positioned as JPM. They seem to have a healthy balance sheet, maintain diversified revenue streams, and deposits seem to show continued consumer confidence in them.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.
h/t ToastedMayonnaise