Bank of America Stock Is Fairly Priced

Bank of America Stock Is Fairly Priced

Share to Linkedin NEW YORK, UNITED STATES - 2020/05/07: Bank of America logo is seen on one of their branches. (Photo ... [+] by John Lamparski/SOPA Images/LightRocket via Getty Images) Bank of America recently released its first-quarter FY2021 results, with the bank outperforming the consensus estimates for revenues and earnings. It reported total revenues of $22. 8 billion, which is marginally higher than the year-ago period. This could be attributed to a 10% rise in sales & trading and a 62% jump in investment banking revenues – equity underwriting revenue increased from $283 million to $900 million in the quarter driven by higher equity issuance deals. However, this growth was partially offset by a 12% drop in the consumer banking division, which contributes close to 40% of the total revenues. Notably, the bank's net interest income for the quarter decreased by 16% y-o-y due to lower interest rates. The bank's adjusted net income of $7. 6 billion increased 113% on a year-on-year basis, mainly due to a significant drop in provisions for credit losses – BAC released $2. 7 billion in reserves for loan losses in the quarter. The company reported $85. 5 billion in revenues for the full year