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Bank of America Corp BAC

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Morningstar’s Analysis

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Solid Q4 Results for Bank of America, but We Think Some Cost Pressure Is Building Behind the Scenes

Eric Compton, CFA Senior Equity Analyst

Analyst Note

| Eric Compton, CFA |

Bank of America reported solid fourth-quarter earnings per share of $0.82, beating FactSet consensus of $0.77, and our own estimate of $0.59. The beat was largely attributable to additional reserve releases. Top-line revenue on a reported basis came in at $22.1 billion, slightly behind our estimate of $23.1 billion, with net interest income coming in stronger than we expected, while fees were down roughly 9% sequentially, a bit weaker than we expected.

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Company Profile

Business Description

Bank of America is one of the largest financial institutions in the United States, with more than $2.5 trillion in assets. It is organized into four major segments: consumer banking, global wealth and investment management, global banking, and global markets. Bank of America's consumer-facing lines of business include its network of branches and deposit-gathering operations, home mortgage lending, vehicle lending, credit and debit cards, and small-business services. The company's Merrill Lynch operations provide brokerage and wealth-management services, as does U.S. Trust private bank. Wholesale lines of business include investment banking, corporate and commercial real estate lending, and capital markets operations. Bank of America has operations in several countries.

Contact
100 North Tryon Street, Bank of America Corporate Center
Charlotte, NC, 28255
T +1 704 386-5681
Sector Financial Services
Industry Banks - Diversified
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 209,000

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