Bank of America will plans to cut 40000 jobs ; Bank of America Corp. is preparing to slash 40,000 or more jobs nationwide, a dramatic retrenchment that reflects the deepening woes of the country's largest bank and the magnitude of the U.S. economic slowdown.
The layoffs will come mainly from the Bank of America's sprawling consumer-banking operations, which will take a heavy toll on branches, loan centers and other offices throughout California.
Bank of America has 45,000 employees in the state, about 1 in 6 of its nearly 300,000-person workforce, and is expected to roll out the job cuts over the next several years. The company also is in the process of closing 10 percent of its branches nationwide.
California has the highest concentration of Bank of America branches in the U.S. with 956 throughout the state, though it has been losing ground in recent years to rivals like Wells Fargo & Co. and JPMorgan Chase & Co.
The layoffs are another blow to California, with its battered economy and nearly 12 percent unemployment rate. From tellers to middle managers, laid-off Bank of America employees are likely to have a tough time finding new jobs.
"We don't need to lose any jobs in this environment, whether in financial services or anywhere else," said Esmael Adibi, a Chapman University economist.
The details of the cutbacks were not officially announced, but the information was disclosed by three Bank of America executives who have been briefed on the plan but were not authorized to speak publicly. Brian Moynihan, Bank of America's beleaguered chief executive, is expected to unveil details at an investor conference Monday in New York.
Investors sent Bank of America shares down 3.1 percent to $6.98 on Friday on a day banks led the overall market sharply lower on more worries about global economies falling into a recession. The Dow Jones industrial average fell 303.68, or 2.7 percent, to 10,992.13
Executives met at the bank's Charlotte, N.C., headquarters Thursday and Friday to finalize the plan, which has been under discussion for months. Moynihan is grappling with how to wring more profit from the bank's core customer base, which includes about 58 million consumer and small-business accounts.
At least one analyst said the cutbacks could weigh heavily on Bank of America's millions of customers, who would have to deal with fewer branches and longer lines for tellers.
"You're definitely going to see decreased service levels for consumers," said Christopher Whalen, a bank analyst at Institutional Risk Analytics. "They're talking about either closing branches or reducing the head count in the branches."
Moynihan hopes to fashion a smaller but more focused company that can withstand the fallout from its disastrous 2008 takeover of mortgage lender Countrywide Financial Corp. in Calabasas. The home-lending unit has run up $30 billion in losses, and faces billions more in potential liability from a barrage of mortgage-related lawsuits.
Federal regulators and private investors allege that Countrywide misled them about the quality of loans and bonds tied to high-risk mortgages bought during the housing boom. Earlier this month, federal regulators sued Bank of America and 16 of its rivals, contending that the banks sold loans to housing goliaths Fannie Mae and Freddie Mac under false pretenses.
Bank of America's retrenchment is also being driven by the slack U.S. economy and darkening outlook for the banking industry. Intensifying worries about its prospects have cut Bank of America's stock price by more than half since mid-January, a far larger hit than its peers have suffered.
"The financial-services industry as a whole is going to shrink," said Nancy Bush, a banking analyst and contributing editor at research firm SNL Financial. "We don't need as many loans, as many credit cards, as many mortgages as we did in the past two decades."
The flailing economy has struck particularly hard at Bank of America, which critics say has been beset by poor management and a flawed growth strategy of rapid-fire acquisitions of other companies. To overcome its woes, Bank of America executives have worked for much of the past year on the ambitious restructuring known as Project New BAC, a reference to the ticker symbol for the company's stock.
Moynihan has made a number of bold steps in recent weeks, including signing on billionaire Warren Buffett as a major shareholder. This week he ousted two senior executives, including Sallie Krawcheck, one of the highest-ranking women on Wall Street.
The first phase of New BAC is designed to streamline the consumer businesses, including home loans, credit cards and wealth management. It also will make cuts in the corporate support staff, such as legal, marketing, human relations and finance employees.
The bank previously had announced another 6,000 job cuts this year and has closed, sold or put on the auction block former Countrywide divisions that made loans through independent brokers, bought loans from smaller lenders and sold specialty insurance.
Critics have urged Moynihan to go even further as he launches a second phase of the BAC project, which will analyze potential cost cuts and restructurings at some of the business lines focused on corporate and institutional clients.
Some critics suggest Moynihan should put Countrywide, which still has a separate identity, into bankruptcy to stem lawsuits. There has also been talk of Bank of America selling all or part of its Merrill Lynch operation, which it bought during the financial crisis.
The company has in the past denied that either of these options is under consideration. A spokesman for the company declined to comment.
Shareholders said they would be watching the developments carefully, noting that Moynihan has been battling a credibility problem since he pledged to raise the dividend and then failed to follow through when regulators objected.
"It's been painful," said Jonathan Finger, who runs a Houston financial firm with a major investment in Bank of America. "He's got to make the public and investors comfortable that the company is going to be strong and is going to be around."
Finger and others believe that the cutbacks stem from Moynihan's desire to show Wall Street he is aggressively addressing the bank's problems.
Bank of America is the nation's largest bank as measured by loans and other assets. But in a measure of its financial afflictions, its stock market value, at about $71 billion on Friday was less than Wells Fargo's $124 billion and Chase's $125 billion.
"Their competition is not standing still - they've got to have a plan to continue to grow and build the business," Finger said.
Showing posts with label Bank of America. Show all posts
Showing posts with label Bank of America. Show all posts
Friday, September 9, 2011
Monday, August 22, 2011
Bank of America NYSE:BAC stock outlook september 2011
Bank of America NYSE:BAC stock outlook september 2011 : Investors have pummeled the banks' stock in recent weeks on fears it may need to raise outside capital to absorb losses, Moynihan announced the 3,500 cuts in a memo to staff on Thursday.
Bank of America Corp plans to cut 3,500 jobs in the next few weeks as CEO Brian Moynihan tries to come to grips with the bank's $1 trillion pile of problem home mortgages.
The job cuts, which the Wall Street Journal said could rise to 10,000 in coming months, follows a series of quarterly losses over the past two years by the biggest U.S. bank, including a record loss of $8.8 billion in the latest quarter.
The job cuts are expected to be supplemented by additional cost-cutting in future quarters as part of a previously announced expense control program known as New BAC -- a reference to the bank's stock ticker.
Bank of America stock prices down august 22 2011, bank of america stock price chart ; Bank of America Corp (BAC.N) shares fell as much as 6.6 percent on Monday, august 22 2011 Read Bank of America stock prices down august 22 2011
With little new loan growth and customers hoarding cash, U.S. banks' demand for deposits has declined from the heights of the housing boom when new deposits were necessary to fuel exploding loan growth.
Bank of America has gradually cut back its branch network from more than 6,000 branches to roughly 5,800.
Bank of America accumulated total noninterest expenses of $43 billion in the first six months of 2011, up 23 percent from the comparable 2010 period. Compensation accounted for 44 percent of the expenses this year.
The bank's second-quarter loss of $8.8 billion, its worst ever, included plans to pay $8.5 billion to settle a lawsuit from mortgage securities investors. However, other investors are contesting the settlement.
Bank stocks worldwide have been under pressure in recent days. Option traders on Thursday zeroed in on European bank stocks as well as on Bank of America and Citigroup. More than 71,000 November $4 puts on BofA changed hands, giving holders the right to sell the stock at a little more than half its current price.
Shares of the bank, which traded above $15 in January, were down 3 cents at $6.98 in midday trading Friday on the New York Stock Exchange.
Bank of America Corp plans to cut 3,500 jobs in the next few weeks as CEO Brian Moynihan tries to come to grips with the bank's $1 trillion pile of problem home mortgages.
The job cuts, which the Wall Street Journal said could rise to 10,000 in coming months, follows a series of quarterly losses over the past two years by the biggest U.S. bank, including a record loss of $8.8 billion in the latest quarter.
The job cuts are expected to be supplemented by additional cost-cutting in future quarters as part of a previously announced expense control program known as New BAC -- a reference to the bank's stock ticker.
Bank of America stock prices down august 22 2011, bank of america stock price chart ; Bank of America Corp (BAC.N) shares fell as much as 6.6 percent on Monday, august 22 2011 Read Bank of America stock prices down august 22 2011
With little new loan growth and customers hoarding cash, U.S. banks' demand for deposits has declined from the heights of the housing boom when new deposits were necessary to fuel exploding loan growth.
Bank of America has gradually cut back its branch network from more than 6,000 branches to roughly 5,800.
Bank of America accumulated total noninterest expenses of $43 billion in the first six months of 2011, up 23 percent from the comparable 2010 period. Compensation accounted for 44 percent of the expenses this year.
The bank's second-quarter loss of $8.8 billion, its worst ever, included plans to pay $8.5 billion to settle a lawsuit from mortgage securities investors. However, other investors are contesting the settlement.
Bank stocks worldwide have been under pressure in recent days. Option traders on Thursday zeroed in on European bank stocks as well as on Bank of America and Citigroup. More than 71,000 November $4 puts on BofA changed hands, giving holders the right to sell the stock at a little more than half its current price.
Shares of the bank, which traded above $15 in January, were down 3 cents at $6.98 in midday trading Friday on the New York Stock Exchange.
Bank of America stock prices down august 22 2011
Bank of America stock prices down august 22 2011, bank of america stock price chart ; Bank of America Corp (BAC.N) shares fell as much as 6.6 percent on Monday, reaching their lowest level in two weeks, as investors fretted about the bank facing additional legal liabilities over mortgages.
Bank of America's shares staged the biggest decline among the major U.S. bank stocks.
A report in the Wall Street Journal on Monday said that U.S. federal and state officials are clashing with banks over how wide-ranging their legal settlements over mortgages should be.
Banks including Bank of America and JPMorgan Chase & Co (JPM.N) are looking to be released from a wide array of potential litigation linked to mortgages in exchange for paying penalties of $20 billion to $25 billion, the newspaper reported. Government officials are looking for more narrower releases.
Investors had hoped that banks could negotiate this settlement and be much closer to ending their legal problems from mortgages, but that may have been too optimistic, investors said.
"They could still have people coming after them, even after this settlement," said one analyst at a hedge fund.
Bank of America shares were down 4.4 percent in early afternoon trading to $6.66, on track to reach their lowest close since August 8, which was in turn their lowest close since March 2009. The bank's shares fell as low as $6.51 on Monday.
JPMorgan shares fell 1.5 percent to $33.84. Overall, bank stocks as measured by the KBW Bank Index .BKX were slightly higher in afternoon trade, up 0.4 percent.
Bank of America's shares staged the biggest decline among the major U.S. bank stocks.
A report in the Wall Street Journal on Monday said that U.S. federal and state officials are clashing with banks over how wide-ranging their legal settlements over mortgages should be.
Banks including Bank of America and JPMorgan Chase & Co (JPM.N) are looking to be released from a wide array of potential litigation linked to mortgages in exchange for paying penalties of $20 billion to $25 billion, the newspaper reported. Government officials are looking for more narrower releases.
Investors had hoped that banks could negotiate this settlement and be much closer to ending their legal problems from mortgages, but that may have been too optimistic, investors said.
"They could still have people coming after them, even after this settlement," said one analyst at a hedge fund.
Bank of America shares were down 4.4 percent in early afternoon trading to $6.66, on track to reach their lowest close since August 8, which was in turn their lowest close since March 2009. The bank's shares fell as low as $6.51 on Monday.JPMorgan shares fell 1.5 percent to $33.84. Overall, bank stocks as measured by the KBW Bank Index .BKX were slightly higher in afternoon trade, up 0.4 percent.
Friday, August 19, 2011
Bank of America Corp (NYSE:BAC) stock outlook august 19 2011
Bank of America Corp (NYSE: BAC) stock outlook august 19 2011 : Bank of America Corp (NYSE:BAC) moved down -0.36% to $6.99. Its total traded volume during last trading session was 135.12 million shares. Company’s 5 years revenue rate remained 5.19%. Its price to sales ratio was 1.00 and debt to equity was 3.47.
The total market capitalization is $70.79 billion. It gained -0.66% return on assets; its operating margin was -21.97%. It gained -7.89% return on equity.
The total market capitalization is $70.79 billion. It gained -0.66% return on assets; its operating margin was -21.97%. It gained -7.89% return on equity.
Monday, August 15, 2011
bank of ireland august 15 2011, Total Voting Rights
bank of ireland august 15 2011, Total Voting Rights : In conformity with Regulation 20 of the Transparency (Directive 2004/109/EC) Regulations 2007, Bank of Ireland announces that, as at 15 August 2011:
1.Bank of Ireland has in issue 30,132,505,842 units of Ordinary Stock, of nominal value of €0.05 each, with voting rights (the "Ordinary Stock"). Bank of Ireland holds 22,008,690 units of Ordinary Stock in treasury which do not carry voting rights; and
2.Bank of Ireland has in issue 1,837,041,304 units of preference stock of €0.01 each (the "2009 Preference Stock") which carry voting rights in limited circumstances. Specifically, where the holder of the 2009 Preference Stock holds less than 25% of the total voting rights in Bank of Ireland pursuant to its holding of Ordinary Stock, the 2009 Preference Stock entitles such a holder to increase its voting rights to 25% of the total number of votes capable of being cast for the following resolutions at a General Court of Bank of Ireland:
· a resolution for the appointment, re-election or removal of directors; or
· a resolution relating to certain matters pertaining to a proposed change of control of Bank of Ireland.
The Ordinary Stock in issue figure of 30,132,505,842 should, therefore, be used by stockholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in Bank of Ireland, under the Transparency (Directive 2004/109/EC) Regulations, 2007 and the Interim Transparency Rules of the Financial Regulator
1.Bank of Ireland has in issue 30,132,505,842 units of Ordinary Stock, of nominal value of €0.05 each, with voting rights (the "Ordinary Stock"). Bank of Ireland holds 22,008,690 units of Ordinary Stock in treasury which do not carry voting rights; and
2.Bank of Ireland has in issue 1,837,041,304 units of preference stock of €0.01 each (the "2009 Preference Stock") which carry voting rights in limited circumstances. Specifically, where the holder of the 2009 Preference Stock holds less than 25% of the total voting rights in Bank of Ireland pursuant to its holding of Ordinary Stock, the 2009 Preference Stock entitles such a holder to increase its voting rights to 25% of the total number of votes capable of being cast for the following resolutions at a General Court of Bank of Ireland:
· a resolution for the appointment, re-election or removal of directors; or
· a resolution relating to certain matters pertaining to a proposed change of control of Bank of Ireland.
The Ordinary Stock in issue figure of 30,132,505,842 should, therefore, be used by stockholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in Bank of Ireland, under the Transparency (Directive 2004/109/EC) Regulations, 2007 and the Interim Transparency Rules of the Financial Regulator
Top financial stocks august 15 2011, Bank of America and Wells Fargo
Top financial stocks august 15 2011, Bank of America and Wells Fargo : Bank of America Corp. and Wells Fargo & Co. led a rally in financial stocks on Monday, gaining after the former unveiled plans to exit the international credit-card business and the latter acquired the investment-banking business of Citadel Securities.
More broadly, the Financial Select Sector SPDR ETF +2.35% which tracks the financials in the S&P 500 SPX +1.64% , added 2% in the early going.
Among the financial stocks in the Dow Jones Industrial Average other than Bank of America, Travelers Cos.TRV +1.10% , American Express Co. AXP +1.72% and J.P. Morgan Chase & Co.JPM +2.65% all rose.
Bank of America BAC +4.53% sold its third international credit-card portfolio of the year and said it plans to exit its much larger consumer credit-card operations in the U.K. and Ireland.
Separately, Wells Fargo WFC +3.17% said it’s hiring 25 investment bankers from hedge fund Citadel, including its head Brian Maier.
The agreement also involves the transfer of Citadel’s related banking business to Wells Fargo. Terms of the transaction weren’t disclosed
More broadly, the Financial Select Sector SPDR ETF +2.35% which tracks the financials in the S&P 500 SPX +1.64% , added 2% in the early going.
Among the financial stocks in the Dow Jones Industrial Average other than Bank of America, Travelers Cos.TRV +1.10% , American Express Co. AXP +1.72% and J.P. Morgan Chase & Co.JPM +2.65% all rose.
Bank of America BAC +4.53% sold its third international credit-card portfolio of the year and said it plans to exit its much larger consumer credit-card operations in the U.K. and Ireland.
Separately, Wells Fargo WFC +3.17% said it’s hiring 25 investment bankers from hedge fund Citadel, including its head Brian Maier.
The agreement also involves the transfer of Citadel’s related banking business to Wells Fargo. Terms of the transaction weren’t disclosed
Friday, August 12, 2011
Bank of America Corp stock prices review august 12 2011
Bank of America Corp stock prices review august 12 2011 : Stock markets bounced back Thursday after plunging this week amid news of the U.S. credit downgrade, concerns about European debt and overall economic worries. Financial stocks took a particularly big hit.
Bank of America shares ended the day at $7.25, up 7 percent from the previous day's close - one of the biggest gains among blue-chip stocks - but shares are still down nearly 50 percent so far this year.
As Bank of America Corp.'s stock has tumbled and clawed back in recent days, city leaders, business owners and others with a stake in the company are waiting to see what happens next.
Bank of America Corp. (NYSE:BAC) Technical analysis for August 12, 2011
Bank of America Corporation BAC Resistance, pivot & Support Levels - 08/12/2011
Resistance levels: $7.92, $7.67, $7.46
Pivot point: $7.21
Support levels: $7.00, $6.75, $6.54
Bank of America Corp (BAC) is still trading $7.50 on but stock has support area is $6.BAC will now have resistance at $7.92 which is the 9 day moving average. Bank of America is new support area is $6 but this is low risk bank stock
Bank of America Corp stock prices august 12 2011
BAC $7.36 0.11 (1.45%)
Bank of America shares ended the day at $7.25, up 7 percent from the previous day's close - one of the biggest gains among blue-chip stocks - but shares are still down nearly 50 percent so far this year.
As Bank of America Corp.'s stock has tumbled and clawed back in recent days, city leaders, business owners and others with a stake in the company are waiting to see what happens next.
Bank of America Corp. (NYSE:BAC) Technical analysis for August 12, 2011
Bank of America Corporation BAC Resistance, pivot & Support Levels - 08/12/2011
Resistance levels: $7.92, $7.67, $7.46
Pivot point: $7.21
Support levels: $7.00, $6.75, $6.54
Bank of America Corp (BAC) is still trading $7.50 on but stock has support area is $6.BAC will now have resistance at $7.92 which is the 9 day moving average. Bank of America is new support area is $6 but this is low risk bank stock
Bank of America Corp stock prices august 12 2011
BAC $7.36 0.11 (1.45%)
Wednesday, August 3, 2011
Stock Market Crash Good News for Mortgage Rates at Bank of America and Wells Fargo
Stock Market Crash Good News for Mortgage Rates at Bank of America and Wells Fargo ; Bank of America (NYSE:BAC) dropped the 30 year fixed rate mortgage to just 4.25% today with an APR of 4.462%. Wells Fargo (NYSE:WFC) is now down to 4.375% with a 4.559% APR.
As the stock market took a dramatic fall yesterday, investors fled to bonds and dropped yields on mortgage backed securities which caused mortgage rates to fall to the lowest levels of 2011. Financial markets were focused on a resolution to the debt ceiling crisis and in the meantime the economy continued to slide. Consumer spending was down and employment forecasts look dismal.
So what is bad for the economy in general is often good news for mortgage rates. Alas, a weak economy makes it difficult for home buyers to take advantage of the fabulous rates.
15 year loans at the banks were 3.375% for the 15 year loan at Wells Fargo and 3.50% at Bank of America. BoA offers a 20 year fixed rate loan at 3.875% today with a 4.078% APR.
ARMs at Wells Fargo start at 2.75% for the 5 year conventional loan. Bank of America is quoting 2.875% for the same loan.
Refinance interest rates at Wells Fargo are 4.50% today for the 30 year refi and 3.625% for the 15 year contract. At BoA the 30 year refinance mortgage rate is 4.375% and the 15 year is 3.625%.
As the stock market took a dramatic fall yesterday, investors fled to bonds and dropped yields on mortgage backed securities which caused mortgage rates to fall to the lowest levels of 2011. Financial markets were focused on a resolution to the debt ceiling crisis and in the meantime the economy continued to slide. Consumer spending was down and employment forecasts look dismal.
So what is bad for the economy in general is often good news for mortgage rates. Alas, a weak economy makes it difficult for home buyers to take advantage of the fabulous rates.
15 year loans at the banks were 3.375% for the 15 year loan at Wells Fargo and 3.50% at Bank of America. BoA offers a 20 year fixed rate loan at 3.875% today with a 4.078% APR.
ARMs at Wells Fargo start at 2.75% for the 5 year conventional loan. Bank of America is quoting 2.875% for the same loan.
Refinance interest rates at Wells Fargo are 4.50% today for the 30 year refi and 3.625% for the 15 year contract. At BoA the 30 year refinance mortgage rate is 4.375% and the 15 year is 3.625%.
Monday, August 1, 2011
Bank of America (NYSE:BAC) Stock Prices outlook august 1 2011
Bank of America (NYSE:BAC) Stock Prices outlook august 1 2011 : Bank of America (NYSE:BAC) is one of the leaders this morning, with its stock trading higher 4% on the US debt ceiling resolution.
Bank of America stock is now trading above the $10 mark once again and is just shy of its 20 day moving average that has been acting as resistance for the past few weeks. Bank of America failed to impress on its corporate results, as it continues to show issues given the mortgage mess.
Current price levels make Bank of America trade at just 6.5 times the consensus 2012 earnings estimates, with a big majority of analysts having price targets of $14 for the stock.
Bank of America stock is now trading above the $10 mark once again and is just shy of its 20 day moving average that has been acting as resistance for the past few weeks. Bank of America failed to impress on its corporate results, as it continues to show issues given the mortgage mess.
Current price levels make Bank of America trade at just 6.5 times the consensus 2012 earnings estimates, with a big majority of analysts having price targets of $14 for the stock.
Tuesday, July 19, 2011
Bank of America (BAC) earning report second quarter 2011
Bank of America (BAC) earning report second quarter 2011, Bank of America (BAC) 19 july 2011, Bank of America (BAC) net profit q2 2011, ; Bank of America (BAC) reported a loss of $9.1 billion during the second quarter, partly due to an $8.5 billion settlement with investors. That agreement, reached in June, settled claims that the bank had sold the investors poor-quality mortgage bonds.
The bank has been hamstrung by litigation and demands from investors who want Bank of America to buy back the bonds that it sold years ago. In the quarter, the bank set aside an additional $1.9 billion to fight litigation bringing the total mortgage-related charges in the second quarter to $20.7 billion. The bank does not disclose the total amount reserved for litigation costs.
The reported loss available to common shareholders was 90 cents a share, wider than the 85 cents a share loss expected by analysts surveyed by FactSet. Excluding charges related to investor settlements, Bank of America earned $3.7 billion, or 33 cents a share. That compares with net income of $3.1 billion, or 27 cents a share, in the same quarter last year. The bank's revenue declined 54% to $13.2 billion from $29.1 billion in the same period last year.
While several of the bank's businesses reported positive earnings, almost all of them saw declines in revenue. Loan losses in its consumer businesses dropped for the fifth consecutive quarter. More of the bank's customers paid on time, which led to a 60% decline in the amount the bank puts aside for credit losses from last year.
Bank of America's credit card division reported income of $2 billion, up $1.2 billion from the year-ago quarter, as customers paid on time. However, revenue declined $1.4 billion.
Commercial banking was another bright spot, reporting net income of $1.4 billion, up $566 million from a year ago. But revenue in the division decreased $73 million from a year ago.
The bank has been hamstrung by litigation and demands from investors who want Bank of America to buy back the bonds that it sold years ago. In the quarter, the bank set aside an additional $1.9 billion to fight litigation bringing the total mortgage-related charges in the second quarter to $20.7 billion. The bank does not disclose the total amount reserved for litigation costs.
The reported loss available to common shareholders was 90 cents a share, wider than the 85 cents a share loss expected by analysts surveyed by FactSet. Excluding charges related to investor settlements, Bank of America earned $3.7 billion, or 33 cents a share. That compares with net income of $3.1 billion, or 27 cents a share, in the same quarter last year. The bank's revenue declined 54% to $13.2 billion from $29.1 billion in the same period last year.
While several of the bank's businesses reported positive earnings, almost all of them saw declines in revenue. Loan losses in its consumer businesses dropped for the fifth consecutive quarter. More of the bank's customers paid on time, which led to a 60% decline in the amount the bank puts aside for credit losses from last year.
Bank of America's credit card division reported income of $2 billion, up $1.2 billion from the year-ago quarter, as customers paid on time. However, revenue declined $1.4 billion.
Commercial banking was another bright spot, reporting net income of $1.4 billion, up $566 million from a year ago. But revenue in the division decreased $73 million from a year ago.
Saturday, July 16, 2011
Bank of America Stock Predictions 2011
Bank of America Stock Predictions 2011 : Bank of America is one of the leading financial institutions in the U.S. and provides a range of products and services like credit cards, mortgages, auto loans, commercial loans, investment banking services and wealth management. It competes with JPMorgan Chase, Goldman Sachs, Morgan Stanley, Deutsche Bank, UBS and Wells Fargo. In this article, we try to gauge the maximum possible impact of the proposed regulatory changes on our near $15 price estimate for Bank of America’s stock.
stock saw a high of $15.25 during the second week of January this year and has since shed nearly a third of its value to around $10.30 recently. Much of the pessimism surrounds regulatory uncertainty due to concerns of tighter regulation and more stringent capital rules.
Corporate and commercial banking is the largest business division for Bank of America contributing about 33% of the company’s value in our analysis. Slow economic growth has reduced the demand for commercial banking loans, which accounts for nearly a third of all loans outstanding for Bank of America.
We currently expect a moderate increase in Bank of America’s outstanding business loans figure because of its strong cash position and wide network of corporate clients.
However, higher capital requirements could hamper the growth of available funds from the bank. Slower economic growth would also make businesses and commercial establishments more reluctant to borrow, and the combined effect would reduce the growth in the total business loans outstanding.
To stimulate demand, the bank could resort to promotional and pricing tactics that would weigh on margins and such a scenario could weigh on margins going forward. This scenario could reduce our estimates for the corporate and commercial banking operating margins from 56% at the end of our forecast period to about 45% and represent a 10% decline in our price estimate for Bank of America.
Bank of America has a large exposure to the struggling mortgage market which is a point of concern for many investors. In 2010, the total value of the company’s mortgage loans outstanding was about $186 billion which could drop to about $90 billion if we factor in the concerns about a slow economic recovery and weak mortgage loan growth.
Also, Bank of America could register heavy losses because of widespread mortgage defaults causing the bank to report negative operating margin similar to its 2009 level of -57% for 2011 and 2012. This scenario would imply a 5% decline in our price estimate for Bank of America.
Still Upside to Shares
In the scenarios highlighted about, we looked at how regulatory uncertainties and a sluggish recovery in the mortgage market could contribute around to around 15% downside to our price estimates. Our bearish scenario indicates a stock value of around $13 and so the near $10 market price today looks overdone and patient investors would do well to give Bank of America another look. See our full analysis of Bank of America
bank of america stock predictions 2011 bac, bank of america stock picks 2011, bank of america stock price 2011, bank of america shares predictions 2011, bank of america stock predictions 2012, Bank of America Stock forecast 2011.
stock saw a high of $15.25 during the second week of January this year and has since shed nearly a third of its value to around $10.30 recently. Much of the pessimism surrounds regulatory uncertainty due to concerns of tighter regulation and more stringent capital rules.
Corporate and commercial banking is the largest business division for Bank of America contributing about 33% of the company’s value in our analysis. Slow economic growth has reduced the demand for commercial banking loans, which accounts for nearly a third of all loans outstanding for Bank of America.
We currently expect a moderate increase in Bank of America’s outstanding business loans figure because of its strong cash position and wide network of corporate clients.
However, higher capital requirements could hamper the growth of available funds from the bank. Slower economic growth would also make businesses and commercial establishments more reluctant to borrow, and the combined effect would reduce the growth in the total business loans outstanding.
To stimulate demand, the bank could resort to promotional and pricing tactics that would weigh on margins and such a scenario could weigh on margins going forward. This scenario could reduce our estimates for the corporate and commercial banking operating margins from 56% at the end of our forecast period to about 45% and represent a 10% decline in our price estimate for Bank of America.
Bank of America has a large exposure to the struggling mortgage market which is a point of concern for many investors. In 2010, the total value of the company’s mortgage loans outstanding was about $186 billion which could drop to about $90 billion if we factor in the concerns about a slow economic recovery and weak mortgage loan growth.
Also, Bank of America could register heavy losses because of widespread mortgage defaults causing the bank to report negative operating margin similar to its 2009 level of -57% for 2011 and 2012. This scenario would imply a 5% decline in our price estimate for Bank of America.
Still Upside to Shares
In the scenarios highlighted about, we looked at how regulatory uncertainties and a sluggish recovery in the mortgage market could contribute around to around 15% downside to our price estimates. Our bearish scenario indicates a stock value of around $13 and so the near $10 market price today looks overdone and patient investors would do well to give Bank of America another look. See our full analysis of Bank of America
bank of america stock predictions 2011 bac, bank of america stock picks 2011, bank of america stock price 2011, bank of america shares predictions 2011, bank of america stock predictions 2012, Bank of America Stock forecast 2011.
Wednesday, July 13, 2011
Bank of America Corporation Wants Europe IPO Changes
Bank of America Corporation Wants Europe IPO Changes : Bank of America Corporation (NYSE:BAC), the biggest US lender by assets, has proposed new guidelines to improve the listing process and to restore trust of IPOs in Europe.
The bank said that these guidelines will help to make transparency in the market.
Craig Coben, Bank of America Corporation (NYSE:BAC)’s head of equity capital markets, said, “There has been a lot of disappointment … We are suggesting that all of us involved in IPOs have to do their part to contribute to improving the process. Distrust has seeped into the process … we need to move beyond finger-pointing and find ways to make the process better”.
Bank of America Corp. (NYSE:BAC) stocks are currently standing at 10.21.
Bank of America Corporation stock Price History
Last Price: 10.21
52 Week Low / High: 10.2 / 15.72
50 Day Moving Average: 11.32
6 Month Price Change %: -28.1%
12 Month Price Change %: -31.5%
The bank said that these guidelines will help to make transparency in the market.
Craig Coben, Bank of America Corporation (NYSE:BAC)’s head of equity capital markets, said, “There has been a lot of disappointment … We are suggesting that all of us involved in IPOs have to do their part to contribute to improving the process. Distrust has seeped into the process … we need to move beyond finger-pointing and find ways to make the process better”.
Bank of America Corp. (NYSE:BAC) stocks are currently standing at 10.21.
Bank of America Corporation stock Price History
Last Price: 10.21
52 Week Low / High: 10.2 / 15.72
50 Day Moving Average: 11.32
6 Month Price Change %: -28.1%
12 Month Price Change %: -31.5%
Bank of America Corporation In Texas Expansion
Bank of America Corporation In Texas Expansion : The global financial service company Bank of America Corporation (NYSE:BAC) is hiring about 100 small business bankers in Texas by 2012 as part of its plan to hire 1,000 small business bankers across US.
The bank will hire bankers from the Dallas, Fort Worth, San Antonio, Houston and Austin regions and has already hired more than 75 bankers across the Texas.
Bank of America Corporation (NYSE:BAC)’s national sales executive Anna Colton said, “Our small business customers want a banking relationship that meets them where they are, providing solutions that are tailored for their business. This hiring effort addresses their needs head on by bringing the banking experience to our small business customers’ place of business and by providing them with solutions to manage their money more efficiently and effectively”.
Bank of America Corp. (NYSE:BAC) shares were at 10.21 at the end of the last day’s trading. There’s been a -23.3% change in the stock price over the past 3 months.
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The bank will hire bankers from the Dallas, Fort Worth, San Antonio, Houston and Austin regions and has already hired more than 75 bankers across the Texas.
Bank of America Corporation (NYSE:BAC)’s national sales executive Anna Colton said, “Our small business customers want a banking relationship that meets them where they are, providing solutions that are tailored for their business. This hiring effort addresses their needs head on by bringing the banking experience to our small business customers’ place of business and by providing them with solutions to manage their money more efficiently and effectively”.
Bank of America Corp. (NYSE:BAC) shares were at 10.21 at the end of the last day’s trading. There’s been a -23.3% change in the stock price over the past 3 months.
BAC stock prices prediction july 2011,Bank of America Corp shares prices forecast 2011, bank of america share price, bank of america share price today, bank of america share price history, bank of america price per share, bank of america buyout countrywide price per share,
Monday, July 11, 2011
Bank of America Corp.Earnings report Financial results on July 19 2011
Bank of America Corp.Earnings report Financial results on July 19 2011 : On of the world's largest financial institutions, Bank of America Corp. (NYSE: BAC) is scheduled to report its second quarter FY 2011 Financial results on July 19 2011. In the last four quarters, the company's reported EPS exceeded Wall Street's consensus estimates for quarters ended June 2010 and September 2010 by margins of 22.70 percent and 68.80 percent, respectively. However, for quarters ended December 2010 and March 2011, the reported EPS missed Wall Street's consensus estimates by margins of 71.40 percent and 37 percent, respectively.
Bank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses, large corporations and governments with a full range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries and various nonbanking subsidiaries throughout the United States and in certain international markets, it provide a diversified range of banking and nonbanking financial services and products through six business segments: deposits, global card services, home loans and insurance, global commercial banking, global banking and markets and global wealth and investment management, with the remaining operations recorded in all other.
For Q1 FY 2011
* Bank of America reported total revenue of $27 billion, down 16 percent, compared with total revenue of $32.2 billion in the first quarter FY 2010. However, sequentially the revenues rose 19 percent from $22.6 billion in the previous quarter.
* Net income was $2 billion, down 37.5 percent, compared with net income of $3.2 billion in the comparable quarter last fiscal. Sequentially, net income increased from a loss of $1.2 billion in the fourth quarter FY 2010.
* Earnings were $0.17 per diluted share, compared with earnings of $0.28 per diluted share in the first quarter FY 2010.
* BofA strengthened its balance sheet with risk-weighted assets declining $23 billion and global excess liquidity increasing $50 billion from the end of 2010 to $386 billion at March 31, 2011.
* Average deposit balances were above $1 trillion, gaining 4 percent from the year-ago period and 2 percent from the fourth quarter of 2010.
For FY 2010
For FY 2010, BofA reported total revenue of $111.4 billion, down 8 percent from total revenue of $120.9 billion in FY 2009. For the year, the company reported a loss of $2.23 billion, or $0.37 per share, compared to net income of $6.2 billion, or $0.29 per share, during last fiscal year. At the end of FY 2010, the corporation had $2.3 trillion in assets and approximately 288,000 full-time equivalent employees.
Analysts Forecast
For the second quarter, analysts' EPS estimates range from a low of $0.13 to a high of $0.39 per share, compared with a consensus estimate of $0.27 per share to $0.28 per share in the year ago quarter. For this quarter, analysts' revenue estimates range from a low of $25.53 billion to a high of $27.40 billion, compared with a consensus estimate of $26.23 billion to $29.15 billion in the same quarter a year ago. For the second quarter, the consensus EPS forecast has been increased from $0.27 per share estimated 30 days ago to the current estimate of $0.28 per share.
In the last 52 weeks, shares of Bank of America traded in the range of $10.40 to $15.72. The last trading price of the stock was $10.9. On May 4, 2011, UBS initiated the stock with a Neutral rating.
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Bank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses, large corporations and governments with a full range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries and various nonbanking subsidiaries throughout the United States and in certain international markets, it provide a diversified range of banking and nonbanking financial services and products through six business segments: deposits, global card services, home loans and insurance, global commercial banking, global banking and markets and global wealth and investment management, with the remaining operations recorded in all other.
For Q1 FY 2011
* Bank of America reported total revenue of $27 billion, down 16 percent, compared with total revenue of $32.2 billion in the first quarter FY 2010. However, sequentially the revenues rose 19 percent from $22.6 billion in the previous quarter.
* Net income was $2 billion, down 37.5 percent, compared with net income of $3.2 billion in the comparable quarter last fiscal. Sequentially, net income increased from a loss of $1.2 billion in the fourth quarter FY 2010.
* Earnings were $0.17 per diluted share, compared with earnings of $0.28 per diluted share in the first quarter FY 2010.
* BofA strengthened its balance sheet with risk-weighted assets declining $23 billion and global excess liquidity increasing $50 billion from the end of 2010 to $386 billion at March 31, 2011.
* Average deposit balances were above $1 trillion, gaining 4 percent from the year-ago period and 2 percent from the fourth quarter of 2010.
For FY 2010
For FY 2010, BofA reported total revenue of $111.4 billion, down 8 percent from total revenue of $120.9 billion in FY 2009. For the year, the company reported a loss of $2.23 billion, or $0.37 per share, compared to net income of $6.2 billion, or $0.29 per share, during last fiscal year. At the end of FY 2010, the corporation had $2.3 trillion in assets and approximately 288,000 full-time equivalent employees.
Analysts Forecast
For the second quarter, analysts' EPS estimates range from a low of $0.13 to a high of $0.39 per share, compared with a consensus estimate of $0.27 per share to $0.28 per share in the year ago quarter. For this quarter, analysts' revenue estimates range from a low of $25.53 billion to a high of $27.40 billion, compared with a consensus estimate of $26.23 billion to $29.15 billion in the same quarter a year ago. For the second quarter, the consensus EPS forecast has been increased from $0.27 per share estimated 30 days ago to the current estimate of $0.28 per share.
In the last 52 weeks, shares of Bank of America traded in the range of $10.40 to $15.72. The last trading price of the stock was $10.9. On May 4, 2011, UBS initiated the stock with a Neutral rating.
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