Bank of America earns $4.1 billion in third quarter

If the gains are sustainable the stock has room to run.

The company’s balance sheet is in the best shape in its history.

Bank Of America Corporation (BAC) swung to a net profit for the quarter ended September. Here are five things investors need to know.

If the clouds really are lifting, Bank of America may have room to run.

I do not have any business relationship with the companies mentioned in this post. Can the company withstand a major financial crisis?

Meanwhile profits in the global wealth and investment management arm fell 19pc to $656m.

Bank of America is an American multinational bank.

It is also important to understand the earnings power of the operation. These analysts are not seeing the forest through the trees, because they are not looking at the individual businesses that make up BAC, and separating the excessive legal and operational costs that are being taken out of the business. In every quarter, I’ve seen progress, and most of that has been under the strong leadership of Brian Moynihan whom I’m a big supporter of. Of all stocks tracked, Bank of America had the 0th highest net out-flow for the day.

When will interest rates rise? The Q3 earnings growth picture becomes a lot less impressive once Bank of America is excluded from the results thus far.

The bank earned $4.51 billion in the profit, as compared to a loss of $232 million a year ago.

“We view third-quarter results as solid given the tough backdrop”, Goldman Sachs analysts wrote in a note. Bond trading revenue declined 10.9 percent to $2 billion.

Although its return on equity came in lower than it did in the second quarter, 0.82% vs. 0.99%, respectively, the figure is generally moving in the direction of Bank of America’s 1% target. As banks continue to reduce their real estate footprint, mobile banking becomes more important. Merrill Edge brokerage assets were up by 8% to $117 billion. Vetr upgraded Bank of America from a “buy” rating to a “strong-buy” rating and set a $18.11 price objective on the stock in a research report on Thursday, September 17th. All of these business trends portend to future growth. The drop in interest rates as well as slowdown in economic recovery, had contributed to the overall pressures the bank faced in the past quarter.

The No. 2 bank in the U.S.by assets is seen as one of the nation’s most sensitive to movements of interest rates amongst the big banks. Non-interest expense declined 31% to $13.8 billion.

Bank of America’s balance sheet is in the best shape in its history.

The institutional sentiment increased to 1.01 in Q2 2015. Its market capitalization is 20.20 Billion. BAC’s global excess liquidity sources are up $70 billion to $499 billion, and the time-to-required funding now stands at an incredible 42 months. Since late in 2011, the company’s shares have been on a generally upward trajectory, rising from a low of $5.20 to a recent high near $18, while the quarterly dividend has grown to 5 cents per share. In the last twelve months shares in the firm have lost 4.60% of their value. The 12-month consensus target price for the stock is $18.67, which reflects an upside potential of 14.96% over the current price.

It is important to understand that ever since the Financial Crisis, the big banks have been repairing/building their balance sheets, dealing with higher costs from legacy business, and have been facing unprecedented legal issues. Additionally, the stock has plummeted -12.43% since the beginning of 2015. This should lead to substantial stock buybacks in the next few CCAR processes, and quite possibly a significant dividend enhancement.

Bank of America earnings topped expectations, reversing a year-earlier loss related to a settlement with the USA government over mortgages. The third-quarter 2015 reserve release of $126 million compared with the year-ago total of $407 million.

M&T Bank Corporation (NYSE:MTB) announced on 2015-07-22 that it will issue $0.7 per share to investors of record on 2015-09-01. Earnings typically refer to after-tax net income.