Latest News that have affected Bank Of America.
Superb earnings! 27cts vs 16cts. Though 10.4billion of goodwill was impaired…
Credit quality trends showed massive improvements.
- Reported Non Performing Assets dropped 3% to $34.6bln this quarter vs only 1% in the previous quarter (Q/Q)
- Net charge offs declined 25% to $7.2bln, vs 11% in the previous quarter.
- Core operations performed really well. Trading revenues increased to $4.5bln due to good fix incomes business!
- Mortgage rep expense declined to 800mln from 1.2bln
- Total repurchase reserves increased to $4.4bln vs $3.9bln in 2Q
- Outstanding repurchase claims stand at $12.9bln ( and recently the NY FED is leading the consortium to force BAC to buyback $37bln more! hurting its stock).
- Tier 1 ratio improved 50bps to 11.2%
The tangible book value per share is $12.91. (BAC is now so much cheaper than this!!) Consider JPM trades at 1.3X TBV.
You decide. BAC is driven down by short traders now as all the uncertainty may cost BAC at least a few billions. I think BAC is a buy at $11.4
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