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 -3.77% change in stock price 10 days leading up to the earnings, and a -0.72% change 10 days following the report. On the earnings day itself, the stock moves by +1.10%. 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
Q4 Net Income Report: Reported $6.7 billion in net income for Q4, translating to $0.82 EPS, marking a solid finish to the year with a full-year net income of $27.1 billion and EPS of $3.21.
Q4 Revenue Surge: Achieved a 15% year-over-year increase in revenue for Q4, totaling $25.5 billion, with net interest income growing 3% and investment banking revenue soaring 44%.
Wealth Management Growth: Added 24,000 new households in wealth management, ending the year with $6 trillion in total client balances, reflecting strong organic growth and client engagement.
Shareholder Return Increase: Returned $21 billion to shareholders in 2024, a 75% increase from 2023, which included an 8% rise in common dividends and $3.5 billion in share repurchases.
CET1 Ratio Strength: Maintained a strong CET1 ratio of 11.9% with $201 billion in regulatory capital, providing a buffer of nearly 115 basis points above the required minimum, supporting future growth initiatives.
Negative
Net Income Decline: Net income for Q4 was $6.7 billion, which is a decrease from the adjusted $5.9 billion in Q4 2023, indicating a decline in profitability year-over-year.
Rising Non-Interest Expenses: Non-interest expense increased to $16.8 billion, up from the previous year, driven by higher incentives and compliance costs, reflecting rising operational pressures.
Commercial Real Estate Decline: Commercial real estate loans dropped by 8% year-over-year, signaling potential weakness in this segment and concerns about the broader real estate market.
Net Charge-Off Stability: Net charge-offs remained steady at $1.5 billion, with expectations for the net charge-off ratio to remain in the range of 50 to 60 basis points, indicating ongoing credit risk concerns.
CET1 Ratio Improvement: The CET1 ratio improved to 11.9%, but the company faces regulatory pressures that could impact future capital management strategies, limiting flexibility in growth initiatives.
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 -3.77% change leading up to the report and a -0.72% change in the 10 days following the release.
