Consistency Is Key for Bank of America
Company needs to show that growth is real before investors buy in.
Bank of America's (BAC) second-quarter earnings showed a few sparks, but it's too early to load up on these shares.
The nation's largest retail bank reported earnings Monday of $1.23 per share, in line with Wall Street's expectations. The best news came from Bank of America's core business--banking--which reported a 5% increase in net income over the year-earlier period and 18% growth since March 31. The pickup in the banking business is encouraging, as the company has struggled to boost the bank's profits since its 1998 merger with NationsBank. Loan and deposit growth was particularly strong in California, Bank of America's premerger home base.
Laura Pavlenko Lutton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.