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Bank of America Q1 Earnings Call Breakdown

Bank of America has recently disclosed its quarterly earnings with net gains of $5.5 billion or $0.59 earning per share. The Common Equity Tier 1 (CET 1) Ratio improved to 11.9% through the increment of 76 points Year-over-Year (YOY).

Although the earning per share has surpassed the estimation by $0.04, the revenue has come down to $20.1 billion, contrasting to forecasts of $20.76 billion made by the analysts. This is due to the backdrop of credit-card demand, higher brokerage service costs, and low-interest rates.

On the 19th of January, 2021, the BAC's shares increased 1% in pre-market trading. It appeared soon after the declaration of its stock repurchases worth $2.9 billion. The firm has a debt to equity ratio of 1.04, a current ratio of 0.87, and a quick ratio of 0.87.

Bank of America ranks as the second biggest bank in America and the world's eighth-largest banking institution. Through its affiliates, BOA serves banking and financial services to individual customers, small and medium-sized enterprises, institutional investors, large companies, and governments worldwide. It was founded in 1998, through the alliance of Bank America and Nations Bank.

BOA primarily functions in consumer banking, Global Banking, Global Wealth & Investment Management (GWIM), and Global Markets. Headquartered in Charlotte, North Carolina, Bank of America also has its branches in New York City, Dallas, Toronto, London, and Hong Kong. The company is also traded on New York Stock Exchange with a market capitalization of $256B.

In 2020, Bank of America had earned net worth $17.9 billion, EPS of $1.87. The company has accomplished various primary strategic goals, such as acquiring market shares in digital leadership extension, deposits, and producing millions of consumers for wealth management. The bank has reported a jump of 5% in non-interest costs to $13.9 billion, fueled mainly by more extraordinary net COVID-19 expenses.

According to the CEO and Chairman of BOA, Brian Moynihan, the corporation has seen a more significant net interest income, increased consumer profits, rising asset management prices, good outcomes from the Global Market team, and a better balance sheet performance. The company plans to be in a position to give back $4.8 billion in capital to its shareholders in the first quarter of 2021. This is to be done in the context of ordinary shares repurchases and dividends.

Recently, Bank of America has declared investments in 40 private funds for around $150 million centered on minority entrepreneurs.