NEW YORK, July 30, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Bank of
America Corporation (NYSE: BAC). Select highlights from the
internally released reports are being made available to the general
public (included below), with access to the entirety of the
research available to new members.
Today, membership is open to readers on a complementary basis at
the following URL: http://www.aciassociation.com/?c=BAC
Highlights from our BAC Report include:
- Investors Cheer a Solid Quarter - Many investors
may have assumed that Bank of America's (BOA) ability to improve
its results would depend on a more favorable interest-rate
environment, but its second-quarter results on Wednesday Morning,
July 15, 2015, appeared to
demonstrate that it can make progress even otherwise, stated an
article on WSJ. Diluted EPS more than doubled to $0.45, from $0.19
reported in the corresponding quarter last year, and significantly
higher than the previous quarter EPS of $0.27. Share prices closed up 3.21% on
Wednesday.
- Continued Business Momentum - Consumer Banking Deposits
(EOP) were up 6% YoY to $547 billion,
while global banking loan balances (EOP) were up 7% YoY to
$307 billion. Residential mortgage
and home equity loan originations were up by a solid 40% YoY to
$19.2 billion. Further, BOA issued
1.3 million credit cards during the quarter, recording the highest
level since Q3 2008.
- Sustained Progress on Expense Management - Noninterest
expense, excluding litigation was down 6% YoY to $13.6 billion, while legacy assets and servicing
noninterest expense, excluding litigation, decreased 37% YoY to
$0.9 billion.
- Strong Credit Quality & Impressive
Returns: BOA informed that the number of 60 plus days
delinquent first mortgage loans serviced by Legacy Assets and
Servicing declined 50% YoY to 132,000 Loans. Also, return on common
equity rose to 8.75% from 3.68% a year ago, the second-best return
since Brian Moynihan became chief
executive in 2010, according to WSJ.
- Record Capital Levels and Healthy Liquidity
Positions - The Common equity tier 1 capital ratio under the
Basel 3 Standardized Transition
approach was 11.2% at June 30, 2015
and 11.1% at March 31, 2015. At
June 30, 2015, the estimated
supplementary leverage ratio (SLR)(N) for the Bank Holding Company
was approximately 6.3%, which exceeded the 5.0% minimum for bank
holding companies, and the estimated SLR for the company's primary
banking entity was approximately 7.0% at June 30, 2015, which exceeded the 6.0% "well
capitalized" level.
To find out how this influences our rating on Bank of America
Corporation, read the full report in its entirely here:
http://www.aciassociation.com/?c=BAC
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