Bank of America announced quarterly results that topped analyst estimates, helping push retail sentiment on Stocktwits back into bullish territory.
The lender reported a revenue of $25.40 billion during the quarter, which was higher than a Street estimate of $25.22 billion. Earnings per share came in at 83 cents as compared to an estimate of 80 cents. Retail sentiment for the stock brightened on Stocktwits with the sentiment meter trending in bullish territory (59/100) supported by high message volumes.
The bank's net interest income (NII), the difference between interest earned and interest expended, rose 3% to $13.70 billion as higher deposit costs more than offset higher asset yields and modest loan growth. The lender also increased the provision for credit losses to $1.50 billion during the quarter (up 36% YoY), as it joins its peers in adjusting for slower economic growth.
Net income fell to $6.90 billion during the quarter compared with $7.40 billion in Q2 of the prior year. The lender has guided an NII of about $14.50 billion for the fourth quarter of this fiscal.
Alastair Borthwick, Chief Financial Officer at Bank of America, said the bank returned $5.40 billion to its shareholders through common stock dividends and share repurchases. “We announced plans for an eight percent increase in our quarterly common stock dividend, to 26 cents per share, pending Board approval. Our diverse businesses leveraged our innovative platforms and services, attracting new client relationships and delivering for our clients, shareholders and the communities we serve,” he said.
In line with the ongoing trend, Bank of America also reported a significant rise in its investment banking fees, recording a 29% rise to $1.60 billion.
The lender's shares have gained over 23% since the beginning of the year. Last week, Piper Sandler upgraded the stock from ‘Underweight’ to ‘Neutral’ while raising its price target from $37 to $42.
Even with the stock currently trading near the $42 mark, some Stocktwits users like Zukio feel there could be more upside as the bank remains below its 2021 and 2006 highs.
