Bank of America Corp (NYSE:BAC) came up with its net earnings review on Thursday. The stock plummeted more than 4%, as the share prices fell, as the investors were keen on selling off the shares in bulk. Though there was a fair share of people who were purchasing BAC shares as the prices dwindled, however, a larger faction was eager on selling off the shares!
Expert breakdown of the BAC candlestick chart.
Revenue And Earnings
BAC witnessed its net revenue slip off the target or anticipated by a wide gamut. The net revenue settled at $18.73 Billion, including the DVA/FVA adjustments that would account for a subtraction of $1.2 Billion. Earnings per share too missed the anticipated target; EPS settled at $0.25 and missed the net tally by a mark of $0.07.
Expenses And Exposure
The bank garnered only $1.75 Billion in the latest quarter from business or consumer banking. On the contrary, the net income was a whopping $1.99 Billion year over year. Non-interest expenses also witnessed a sharp rise to $4.015 Billion. In comparison, the same was flat at the same time in FY 2014. However, the number of individuals accessing the mobile banking rose from mere 9% to around 15% over the past 1 year.
Net income form investment management on the global wealth parlance staggered at $706 Million. In comparison, the year over year income was $778 million. Global banking net income witnessed a sharp increase from $1.255B to $1.433B.
Counting The Losses
Losses in the global market also increased quite emphatically. After adjustment, the net garbled loss was $72 million in comparison to a rather meek $47 million year over year. Book value on each share basis increased from $20.71 into $21.32 over a period of one year, during the same period of time.
Long Term Prospects
In Q4 2014, Bank of America Corp (NYSE:BAC) missed the net revenue by a whopping $2B, powered by dwindling returns and collapse in trading revenues. Investors seeking long term returns should ideally invest as the share price remains less or lowers.