US stocks have reclaimed some of the lost ground in recent sessions after President Trump agreed to a 90-day pause on almost all of his reciprocal tariffs, except those on China.But there still are names, even in the large-cap space, that are on the verge of forming a “death cross” at writing, indicating potential for significant further downside ahead.These include the Walt Disney Co (NYSE: DIS) and the Bank of America Corp (NYSE: BAC). But does that mean you should pull out of both immediately? Let’s expl ...

Core Viewpoint - Bank of America (BAC) reported first-quarter 2025 earnings of 90 cents per share, exceeding the Zacks Consensus Estimate of 81 cents and showing an increase from adjusted earnings of 83 cents in the prior-year quarter [1] Group 1: Financial Performance - BAC's net income applicable to common shareholders rose 13.8% year-over-year to $7 billion, surpassing the estimate of $6.19 billion [5] - Net revenues reached $27.37 billion, beating the Zacks Consensus Estimate of $26.86 billion and increasing 6% from the prior-year quarter [5] - Non-interest income grew 9.6% to $12.92 billion, driven by higher total fees and commissions, exceeding the projected $12 billion [6] - Non-interest expenses increased by 3.1% to $17.77 billion due to higher revenue-related expenses and investments, slightly above the estimate of $17.63 billion [7] - The efficiency ratio improved to 64.59%, down from 66.36% in the year-ago quarter, indicating enhanced profitability [7] Group 2: Revenue Drivers - Sales and trading revenues (excluding net DVA) increased by 9% to $5.65 billion, marking the highest level in a decade, with fixed-income trading fees up 4.7% and equity trading income up 16.7% [2] - Higher net interest income (NII) was a significant growth driver, with NII growing 2.8% year-over-year to $14.59 billion, slightly above the estimate of $14.55 billion [3][6] - Management projects NII to grow sequentially to approximately $15.5-$15.7 billion by the end of the fourth quarter [3] Group 3: Investment Banking Performance - Investment banking fees in the Global Banking division were stable at $847 million, with a decline in equity underwriting income offset by improvements in advisory revenues and higher debt underwriting income [4] Group 4: Credit Quality - Provision for credit losses increased by 12.2% year-over-year to $1.48 billion, exceeding the estimate of $1.18 billion [8] - Net charge-offs decreased by 3.1% to $1.45 billion, while non-performing loans and leases as a percentage of total loans were 0.55%, down 1 basis point [8] Group 5: Capital Position and Share Repurchase - Book value per share as of March 31, 2025, was $36.39, up from $33.71 a year ago, while tangible book value per share increased to $27.12 from $24.79 [10] - The common equity tier 1 capital ratio was 13.3% as of March 31, 2025, compared to 13.4% a year ago [10] - The company repurchased shares worth $4.5 billion during the reported quarter [11] Group 6: Future Outlook - The company's focus on digitization, operational expansion, and decent loan growth is expected to support future growth, although elevated expenses and funding costs present challenges [12]

Financial Data and Key Metrics Changes - Bank of America reported a net income of $7.4 billion and earnings per share (EPS) of 90 cents for Q1 2025, reflecting a year-over-year revenue growth of 6%, net income growth of 11%, and EPS growth of 18% [8][25] - The return on assets was 89 basis points, and the return on tangible common equity was 14% [8] - Net interest income (NII) grew by 3% year-over-year, reaching $14.4 billion on a GAAP basis [39] Business Line Data and Key Metrics Changes - Consumer banking generated $10.5 billion in revenue and $2.5 billion in net income, with revenue growth of 3% year-over-year [55] - Wealth management reported revenue of $6 billion, growing 8% year-over-year, with net income of $1 billion [60] - Global banking produced earnings of $1.9 billion, with revenue flat at $6 billion compared to the previous year [63] - Global markets earned $1.9 billion, with revenue improving by 10% year-over-year [66] Market Data and Key Metrics Changes - Deposits reached nearly $2 trillion, growing 8% from mid-2023 lows, marking the seventh consecutive quarter of deposit growth [9][35] - Commercial loans grew by 7% year-over-year, with a modest increase in revolver utilization noted [37] - Consumer spending across various methods grew at a pace of 4.4% in Q1 2025 compared to Q1 2024 [19] Company Strategy and Development Direction - The company continues to focus on organic growth across its business lines, with significant investments in commercial banking and wealth management [14][98] - Bank of America is leveraging technology, including artificial intelligence, to enhance efficiency and client engagement [100] - The company aims to maintain a strong balance sheet with over $200 billion in regulatory capital and nearly $1 trillion in liquidity [12][32] Management's Comments on Operating Environment and Future Outlook - Management does not anticipate a recession in 2025 but has lowered GDP growth expectations [18] - The company is prepared for potential economic changes, emphasizing the strength of its credit portfolios and capital [70][71] - Consumer spending remains robust, with a 5% growth rate observed in early April 2025 [126] Other Important Information - Non-interest expenses were reported at $17.8 billion, up from the previous quarter, driven by seasonal payroll taxes and litigation costs [27][50] - The tangible book value per share increased by 9% year-over-year to $27.12 [32] Q&A Session Summary Question: Capital management and CET1 ratio comfort level - Management indicated flexibility in capital management and emphasized the importance of maintaining a strong CET1 ratio while growing into the capital base [96] Question: Outlook for loan and deposit growth - The strength in loan and deposit growth is attributed to investments in commercial banking and enhanced efficiency through technology [98][100] Question: Loan loss reserve dynamics - The reserve was set using blue chip economic indicators, reflecting a cautious approach to economic growth and inflation [106][108] Question: Expense outlook for the year - Management confirmed that the expense growth expectation remains at 2% to 3% for the full year [113] Question: Impact of interest rate cuts on NII target - Management maintains the NII target for Q4 2025 despite anticipated interest rate cuts, emphasizing the company's historical earnings power [120][123] Question: Near-term business segment activity amid volatility - Increased customer activity in global markets was noted, with no significant deposit flight observed [125]

Highlights Consumer spending remains robust, according to Bank of America’s latest earnings report. Digital engagement continues to accelerate: Bank of America is seeing significant growth in digital adoption. Businesses are cautiously optimistic amid tariff concerns. Consumers are still spending, Bank of America’s earnings showed Tuesday (April 15), despite the volatility of what CEO Brian Moynihan termed a “changing economy.”  The supplementals revealed that credit and debit spend was up 4%, w ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Economic & Earnings CommentaryNew economic data is out this morning, some of it reflecting conditions prior to our current tariff realities. We also see Q1 earnings results continue to ramp up, but we won’t have the spigots open completely til next week. Pre-markets are down somewhat, following a +3/4-percent gain on the Dow and the S&P 500, +2/3-percent gain for the Nasdaq.Import Prices Swing to Negative in MarchHeadline Import Prices for last month have arrived, marking the first monthly negative since Se ...

Bank of America (BAC 3.98%) posted better-than-expected numbers for the first quarter, signaling that the uncertainty gripping Wall Street has not yet made its way to Main Street.Investors applauded the results, sending Bank of America shares up as much as 6% on Tuesday and up 4% as of 11 a.m. ET.Strong momentum in consumer banking and tradingBank of America earned $0.90 per share in the quarter on revenue of $27.4 billion, surpassing Wall Street expectations for $0.82 per share in earnings on sales of $26. ...

Two of the biggest US banks, Citigroup and Bank of America, notched better-than-expected profits in the first three months of this year as traders raked in higher revenues amid President Donald Trump’s threat to start a global trade war.The banks reaped the benefits of investors adjusting their portfolios after being spooked about a possible return to protectionist trade policies, following a similar trend at fellow Wall Street giants JPMorgan and Goldman Sachs.President Trump had unveiled a string of ‘reci ...

Group 1: Earnings Reports - Goldman Sachs (GS) reported first-quarter earnings, followed by Bank of America Corp (BAC) and Citigroup Inc (C) [1] - BAC's first-quarter earnings and revenue exceeded expectations, with a notable increase in net interest income and trading revenue, leading to a 4.4% rise in stock price to $38.32 [1] - Citigroup's stock increased by 3% to $65.16 after its top-line results also beat expectations, marking a 12% year-over-year increase [3] Group 2: Stock Performance - BAC's stock is down 13% in 2025, recovering from an 18-month low of $33.06 on April 9 [1] - Citigroup's shares are still significantly below their 17-year high of $84.74 reached on February 18 [3] Group 3: Options Activity - Over 110,000 calls have been traded for BAC, which is five times the average intraday volume, with significant interest in the April 39- and 40-strike options [2] - Citigroup's options activity is also notable, with over 26,000 calls traded in the first hour, double the average intraday volume, particularly in the April 67 and 65 calls [4]

Bank of America (BAC) reported $27.37 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 6%. EPS of $0.90 for the same period compares to $0.83 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $26.86 billion, representing a surprise of +1.89%. The company delivered an EPS surprise of +11.11%, with the consensus EPS estimate being $0.81.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall S ...