Bank of America has previously said that a 100-basis point rise in interest rates (an additional 1%) would translate to an additional $5.3 billion in net interest income. When you include dividends, we're talking about a 51% total return for the bank's shareholders - an fantastic performance for one year.
The company announced its last quarter financial performance results on 10/17/2016.
If Trump is successful in creating wage and job growth, as he claims, it would translate into more deposits for the bank, and likely lead to more demand for loans and other banking products.
"The US economy may be building momentum", he said in a statement.
In a nutshell, Bank of America dedicating almost $2 billion more than it had planned to buybacks over the next six months sends a clear message that management still believes the stock is a great value, and a smart use of capital, even after the big rally. Quarterly revenue was essentially flat in the banking division, which includes investment banking, and consumer banking.
While looking at the Stock's Performance, Bank of America Corporation now shows a Weekly Performance of 0.52%, where Monthly Performance is -0.09%, Quarterly performance is 43.73%, 6 Months performance is 73.09% and yearly performance percentage is 53.04%.
BAML's FICC revenues increased 31%.
The Fed's most recent interest rate hike, in mid-December, is expected to benefit Bank of America and other banks this year.
Many Wall Street Analysts have commented on Bank of America Corp.
In the duration of 12 months Bank of America's share price has increased by 51.6% to 22.85 from 15.07. Mr. Donofrio said the bank was comfortable with its risk decisions. "We've often said that when things are great we might not be as high but when things aren't so good we're not going to be as low". The bank's net interest income rose 6.3% to $10.29 billion, but paper losses on its investment portfolios subtracted from its net worth.
It added that total sales and trading revenue increased by 11% in the fourth quarter, spurred by a surge in activity in stock and bond markets following Donald Trump's surprise victory on November 8.
The largest United States bank, JPMorgan Chase & Co.(NYSE:JPM), and the country's biggest mortgage lender, Wells Fargo & Co. The most expectant earnings per share estimate of the stock is set at $1.5 while the conservative estimates kept at $1.44 over the current year.
BofA, considered the most interest-rate sensitive among the major US banks due to its large stock of deposits and mortgage securities, said its net interest income rose 6.3 percent to $10.29 billion in the quarter.
Mr. Moynihan has made cost cutting a key tenet of his strategy, sometimes noting how the bank could save both time and money by switching more customers from cash and checks. To get to that level, the bank would need to turn in expenses averaging $13.25 billion a quarter.
Matthew Frankel owns shares of Bank of America. The stock has a market capitalization of $232.92B and it has 10.11B outstanding shares.