Certainly, one of the driving forces of the transaction is a more favorable regulatory environment. But it also seems that the combination of the TBC and the STI mainly consists of pushing mega-banks.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "If this is the case, it is As a result, when investors are looking for opportunities, it seems rather wise to focus on those who are the leaders. That's why I think Bank of America (NYSE:LAC) represents a good opportunity at the moment. "data-reactid =" 26 "> In any case, it is a validation of the fact that the more numerous and better the financial services, so when investors look for opportunities, this seems like a very good bet. those who are the leaders, that's why I think Bank of America (NYSE:LAC) represents a good opportunity for the moment.
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After all, just look at the latest earnings report. Profits reached 73 cents per share, a record $ 7.3 billion, and revenues reached $ 22.7 billion. By comparison, Street was looking for 63 cents per share and $ 22.4 billion. These figures boosted Bank of America shares by more than 7% on news.
The key indicator of net interest income was 2.48% (it is the difference between what LAC lends on its money and what it pays to its depositors) . Essentially, the large deposit base has remained relatively stable despite interest rate fluctuations.
BAC Stock and the economy
Nevertheless, the stock of LAC is mainly related to the economic situation of the United States. And yes, it is certainly a good thing, because most economies in the rest of the world have not experienced the same growth as in recent years.
The performance of LAC's consumer banking sector during the quarter is an excellent indicator of the strength of the US economy. Keep in mind that the division posted earnings growth of 52% to $ 3.3 billion. There has also been a 6% increase in the use of debit and credit cards.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "But when it comes to stock BAC, It is also important to note that BofA, which includes Merrill Lynch and US Trust, is a thriving wealth management company, which has reported a 7% increase in revenue, which has $ 4.99 billion in the fourth quarter. Morgan Stanley (NYSE:MRS) Wells Fargo (NYSE:WFC) and JPMorgan Chase (NYSE:JPM), which reported declines. "data-reactid =" 36 "> But when it comes to BAC shares, it is also important to note that BofA has a successful wealth management business, which includes Merrill Lynch and US Trust. Segment business has further increased by 7% to $ 4.99 billion, which contrasts sharply with that of its peers, such as Morgan Stanley (NYSE:MRS) Wells Fargo (NYSE:WFC) and JPMorgan Chase (NYSE:JPM), which reported declines.
Certainly, LAC still has some issues, such as slow growth trading revenue, up only 1% in the quarter. The main culprit was a 15% drop in the fixed income segment. Again, trade is often volatile and difficult to manage.
Conclusion on LAC stock
As for Bank of America shares, it's not just the scale. The company has been advised to invest significant sums in digital technologies. BAC is becoming a major player in the growing fintech market.
It has approximately 36.3 million active customers in the digital banking sector, of which 26.4 million use their mobile devices to access services. About 19% of consumer mortgage applications come from digital channels.
The Zelle peer-to-peer payment application has also been very successful. Year-over-year, volumes climbed 97% to $ 14 billion. In addition, LAC is enjoying success with its digital assistant, Erica, which has 4.8 million users.
Of course, the fintech efforts are still in their infancy. But innovations should help growth in the long run. In the meantime, the BAC designation presents the benefits of a stable business that should continue to benefit from the growth of the US economy. Bank of America's management remains focused on reducing costs and streamlining the physical footprint of branches. In other words, for investors looking for a bank with several positive factors, the BAC stock is perfect.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Tom Taulli is the author of Profitable IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. At the time of writing these lines, he held no position on the aforementioned securities."data-reactid =" 45 ">Tom Taulli is the author of Profitable IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. At the time of writing these lines, he held no position on the aforementioned securities.
Shares after Bank of America look good for investors who see bigger as better appeared first on InvestorPlace.