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Bank of America (BAC) Reports Q1 Earnings: What Key Metrics Have to Say

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For the quarter ended March 2023, Bank of America (BAC - Free Report) reported revenue of $26.26 billion, up 13% over the same period last year. EPS came in at $0.94, compared to $0.80 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $25.07 billion, representing a surprise of +4.72%. The company delivered an EPS surprise of +18.99%, with the consensus EPS estimate being $0.79.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Bank of America performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Efficiency Ratio (FTE basis): 61.53% versus the seven-analyst average estimate of 63.74%.
  • Net interest income/yield on earning assets - Yield/rate: 2.2% versus 2.21% estimated by seven analysts on average.
  • Total earning assets - Average balance: $2,671.43 billion versus $2,629.98 billion estimated by seven analysts on average.
  • Net charge-off / Average Loans: 0.32% compared to the 0.29% average estimate based on six analysts.
  • Total nonperforming loans, leases and foreclosed properties: $4.08 billion versus the four-analyst average estimate of $4.68 billion.
  • Tier 1 Capital Ratio: 13.1% compared to the 13.03% average estimate based on four analysts.
  • Total Non-Performing Loans: $3.92 billion versus $4.52 billion estimated by four analysts on average.
  • Tier 1 Leverage Ratio: 7.1% versus the three-analyst average estimate of 6.99%.
  • Total Noninterest Income: $11.81 billion compared to the $10.79 billion average estimate based on seven analysts.
  • Net Interest Income- Fully taxable-equivalent basis: $14.58 billion compared to the $14.41 billion average estimate based on seven analysts.
  • Investment and brokerage services: $3.85 billion versus the six-analyst average estimate of $3.85 billion.
  • Investment banking fees: $1.16 billion compared to the $1.04 billion average estimate based on six analysts.
View all Key Company Metrics for Bank of America here>>>

Shares of Bank of America have returned +9.4% over the past month versus the Zacks S&P 500 composite's +6.2% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

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