LONDON, October 20, 2014 /PRNewswire/ --
Investor-Edge.com has issued free earnings coverage on Bank of America Corp. (NYSE: BAC). On October 15, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Bank of America. During Q3 FY14, Bank of America Corp., continued to show business momentum with four of its five businesses reporting higher net income compared to year-ago quarter. Also, sales and trading revenue, excluding net DVA, was up 9% Y-o-Y. Our free coverage report can be accessed at:
www.investor-edge.com/register
Earnings Overview
During Q3 FY14, Bank of America Corp. reported revenue, net of interest expense of $21,209 million, compared to $21,530 million in the same period last year. The company's net sales during the reported quarter came below the Bloomberg analysts' forecast of $21,355 million. Net interest income and noninterest income narrowed to $10,219 million and $10,990 million respectively in Q3 FY14, from $10,266 million and $11,264 million, reported in Q3 FY13. On fully taxable-equivalent (FTE) basis (a non-GAAP financial measure), revenue for Q3 FY14 decreased to $21,434 million, from $21,743 million in the year-ago quarter. The free research on BAC can be downloaded as in PDF format at:
www.Investor-Edge.com/BACFreeReport
Provision for credit losses during Q3 FY14 increased to $636 million, from $296 million in Q3 FY13, driven by $400 million in incremental credit costs associated with the consumer relief portion of the Department of Justice Settlement. On the other hand, the company said that its credit quality continued to improve with net charge-offs down 38% Y-o-Y to $1,043 million and net charge-off ratio falling to a decade low of 0.46% in Q3 FY14. The company's noninterest expense however increased substantially during the quarter to $19,742 million, compared to $16,389 million in the prior year's third quarter, driven by higher mortgage-related litigation expense, partially offset by reduced personnel expense.
Bank of America Corp., reported net income of $168 million, and a loss of $0.01 per share after deducting dividends on preferred shares, during Q3 FY14. This compares to a net income of $2,497 million, and diluted EPS of $0.20 per share in Q3 FY13. The reported quarter results however fared better when compared to estimates from Bloomberg analysts, who had expected the company to report net loss of $970 million, or $0.09 loss per diluted share in Q3 FY14. The company informed that third quarter results of 2014 include a previously announced pretax charge of $5.3 billion for the settlement with the Department of Justice, certain federal agencies and six states (DoJ Settlement), which impacted the reported quarter EPS by $0.43. Sign up and read the free analyst's notes on BAC at:
www.Investor-Edge.com/BAC-20102014
Brian Moynihan, Chief Executive Officer of Bank of America Corp., said that the company saw solid customer and client activity and improved profitability in most of its businesses relative to the year-ago quarter. He also stated that Bank of America's team remains focused on streamlining and simplifying the company and connecting customers and clients with the real economy, an approach that is paying dividends for them and for the company's shareholders.
Further, the Chief Financial Officer of Bank of America Corp., Bruce Thompson, stated that the company continued to focus on optimizing its balance sheet this quarter so it can best serve the core financial needs of its customers and clients and still be in a position to meet new capital and liquidity requirements in an evolving regulatory framework. Mr. Thompson also said that the company has made significant progress on its cost structure, staying on track to meet the goals established three years ago, and asserted that the company's credit quality metrics reflect both the improved environment and its risk underwriting.
Stock Performance
On the day of the earnings release, October 15, 2014, Bank of America Corp.'s stock ended the session at $15.76, losing 4.60% for the day. However, the stock picked up 2.03% on the following day, and on the last close, Friday, October 17, 2014, it finished at $16.21, 0.81% above its previous day's closing price, after vacillating between $16.16 and $16.41 during the session. A total of 94.34 million shares were traded, which was above its three months average volume of 81.80 million shares. Over the previous three trading sessions and last one month, the company's shares have fallen by 1.88% and 4.37%, respectively. However, the stock has gained 4.11% from the beginning of 2014. Shares in Bank of America Corp. are trading above their 200-day moving average of $16.12 but below its 50-day moving average of $16.35. Furthermore, the stock traded at a PE ratio of 9.90 and has a Relative Strength Index (RSI) of 43.95. Visit Investor-Edge and access the latest research on BAC at:
www.Investor-Edge.com/BACEarningsCoverage
Sneak Peek to Corporate Insider Trading
In the last one month, there was only one insider transaction made by Jack O. Bovender, Jr., Lead Independent Director at Bank of America Corp. He purchased 4,948 shares of the company on October 01, 2014, at a price of $16.82 per share, aggregating to a total value of $83,225.40. Complimentary in-depth research on BAC is available at:
www.Investor-Edge.com/BACInsiderTrading
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