BAC Earnings Prediction
The chart below shows how BAC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BAC sees a -2.54% change in stock price 10 days leading up to the earnings, and a -0.14% change 10 days following the report. On the earnings day itself, the stock moves by +1.35%. This data can give you a slight idea of what to expect for the next quarter's release.
BAC Key Earning Data
BAC Earnings Analysis
Positive
Strong Q1 Earnings Report: Bank of America reported $7.4 billion in net income and $0.90 in EPS for Q1 2025, exceeding expectations of $0.817.
Revenue and Income Growth: Revenue grew by 6% year-over-year, with net income increasing by 11% and earnings per share rising by 18%.
Deposit Growth Surge: Deposits reached nearly $2 trillion, marking an 8% increase from mid-2023, and have grown for seven consecutive quarters.
Commercial Loan Growth: Commercial loans grew across nearly every line of business, indicating strong demand and performance.
Checking Account Growth: The consumer banking segment added 250,000 net new checking accounts, continuing a streak of 25 quarters of growth in this area.
Wealth Management Growth: Wealth management saw net AUM flows of $24 billion and added 7,200 net new households in the quarter, showcasing strong client engagement.
Sales and Trading Revenue Growth: Sales and trading revenue grew by 9% year-over-year, with a 16% return on allocated capital, reflecting effective management and client activity.
Strong Financial Foundation: The bank maintained a strong balance sheet with over $200 billion in regulatory capital and nearly $1 trillion in liquidity, providing a solid foundation for future growth.
Stable Asset Quality: The bank's asset quality remains strong, with net charge-offs stable around $1.5 billion for five consecutive quarters, indicating effective risk management.
Digital Engagement Expansion: Digital engagement continues to expand, with over 14 billion logins in 2024 and a significant increase in transactions through digital platforms.
Negative
NII Growth Under Pressure: Net interest income (NII) growth is under pressure due to potential interest rate cuts, with a forecasted decline of $2.2 billion if rates drop by 100 basis points.
Rising Non-Interest Expenses: Non-interest expenses increased to $17.8 billion, driven by higher payroll taxes, litigation costs, and market-related expenses, which could impact profitability.
Provision and Charge-Off Analysis: The provision expense for the quarter was $1.5 billion, matching net charge-offs, indicating a potential risk in asset quality as charge-offs remain elevated at $1.45 billion.
Market Volatility Concerns: Concerns were raised about market volatility and economic uncertainty, which could affect client behavior and overall business performance.
Deposit Reliance Challenges Earnings: Despite strong revenue growth, the bank's reliance on high-quality deposits is challenged by a decline in rates paid, which could impact future earnings.
BAC FAQs
How does BAC typically perform around its earnings report dates?
BAC's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -2.54% change leading up to the report and a -0.14% change in the 10 days following the release.
Is Bank of America Corp (BAC) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
BAC Earning Call Sentiment
Bank of America Corporation (NYSE:BAC) Q1 2025 Earnings Call Transcript
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