Bank of America Corp
BAC: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $91.00 | Tkjw | Qrtrzcrr |
Bank of America Earnings: Investment Banking, Asset Management Keep Fees Strong but Charge-Offs Rose
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Wide-moat-rated Bank of America reported first-quarter adjusted earnings per share of $0.83, higher than the FactSet consensus estimate of $0.76 per share. The first-quarter results of banks were impacted by an FDIC special assessment charge of $0.7 billion for uninsured deposits of certain failed banks that reduced earnings by $0.07 per share. The first-quarter numbers, after adjusting for the FDIC charge, resulted in a return on tangible equity of 13.8%. We do not plan to materially change our $38 fair value estimate for Bank of America as we fully incorporate the first-quarter results.