Bank of America Corp, a leading global financial institution

With a history that goes back 240 years, Bank of America today ranks among the top global financial institutions. It provides a comprehensive range of banking, investment management, stock, and other financial risk and management products and services to individuals, SMEs, large corporations, and government entities.

Bank of America operates across the United States, its territories, and 35+ countries, and employs approximately 213,500 people. It serves 69 million US consumer and small business clients and maintains around 3,700 financial centres and 15k ATMs across the country. It is the leading small business lender in the United States, serving 4 million small business clients.

The bank manages $4.2 trillion in client balances through its wealth management division and provides Global Markets services to roughly 8k clients across the globe in debt, equity, commodity and forex markets. In 2023, Bank of America was ranked as the #1 global equity provider by Institutional Investor and #3 in global investment banking fees. It also has established relationships with 95% of the U.S. Fortune 1000 companies.

Digital capabilities

Bank of America currently serves approximately 58 million digital users, with 48 million active users logging in more than 3.6 billion times this quarter (11% increase). Erica, the bank’s virtual financial assistant, has facilitated 2.4 billion client interactions since its launch 6 years ago. Erica has also assisted 45+ million clients with their financial needs. Zelle also achieved significant growth with 23.3 million active users completing 400 million transactions totalling $121 billion (25% Y-on-Y increase). Notably, the bank’s corporate and commercial CashPro App has facilitated $283 billion in quarterly payment approvals.

Interestingly, according to a recent press release by the bank dated 23 October 2024, Bank of America highlights that its dedication to innovative technology to best meet the needs of its clients and employees, “has led to a 94% increase in artificial intelligence (AI) and machine learning (ML) granted patents and pending patent applications since 2022. Today, the company has nearly 1,100 AI and ML patents and pending applications in its portfolio, with more than half having already been granted.”

Stock listing and market capitalisation

Bank of America Corp stock is listed on the New York Stock Exchange (NYSE) under the ticker symbol “BAC”.  The company’s market capitalisation is at US$323.08 billion at close 24 October 2024. Revenue is valued at US$94.63 billion, with a net income of US$23.61 billion.

Worth mentioning however is a recent The Economic Times article dated 24 October 2024 that reports, “Bank of America may run the risk of ending up being quite behind the likes of Goldman Sachs and JP Morgan in terms of its earnings in coming days, and there are already inclinations of the same, according to the latest stats available. However, its stocks still went up, relying on its dedicated base of investors, but things may not stay the same for long, if the latest problems within the top bank’s bracket are not addressed.” The article further states that, ” Bank of America’s CEO Brian Moynihan’s aversion to risk is being seen as one of the main reasons as to why their earnings are going down steadily.”

Bank of America Corp’s top institutional shareholders as of 30 June 2024

According to Yahoo Finance, as of 30 June 2024 Berkshire Hathaway, Inc. holds the largest stake with 1.03 billion shares, representing 13.31% and a value of $43.38 billion. The Vanguard Group follows with 641.63 million shares, equating to 8.27% and $26.95 billion. BlackRock, Inc. holds 473.12 million shares (6.10%) valued at $19.87 billion, while State Street Corporation owns 287.79 million shares (3.71%) worth $12.09 billion. FMR, LLC’s stake is 200.22 million shares (2.58%), valued at $8.41 billion, and JP Morgan Chase & Company holds 147.82 million shares (1.90%) at $6.21 billion. Geode Capital Management, LLC has 138.56 million shares (1.79%) valued at $5.82 billion, while Norges Bank Investment Management holds 122.92 million shares (1.58%) worth $5.16 billion. Morgan Stanley’s stake includes 109.16 million shares (1.41%) valued at $4.58 billion, and Price (T. Rowe) Associates Inc. rounds out the list with 88.01 million shares (1.13%) at $3.70 billion.

Bank of America Reports 3Q24 net income of $6.9 billion, EPS of $0.81, Revenue improved YoY to $25.3 Billion

In the third quarter of 2024, net income was $6.9 billion, or $0.81 per diluted share, down from $7.8 billion, or $0.90 per diluted share, in Q3 2023. Revenue, net of interest expense, totalled $25.3 billion ($25.5 billion FTE), reflecting a $178 million increase driven by higher asset management, investment banking fees, sales and trading revenue, partially offset by lower net interest income (NII). NII stood at $14.0 billion ($14.1 billion FTE), decreasing 3% from Q3 2023 due to higher deposit costs, though up 2% from Q2 2024, aided by fixed-rate asset repricing. The provision for credit losses was $1.5 billion, flat compared to Q2 2024 but up from $1.2 billion in Q3 2023, with net charge-offs also remaining flat at $1.5 billion. Noninterest expense rose 4% to $16.5 billion, driven by revenue-related costs and franchise investments.

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Disclaimer: This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

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