Bank of America Corporation (NYSE: BAC)
Financial Analysis | April 25, 2025
Company Overview
Bank of America is one of the world’s largest financial institutions, offering a full suite of banking and financial services including consumer banking, corporate and investment banking, wealth management, and markets services. With assets exceeding $3 trillion and a global footprint, it serves individuals, businesses and institutions through digital platforms and a network of branches.
Key Statistics
Market Cap
$299.23 B
Revenue (TTM)
$97.45 B
Net Income (TTM)
$26.35 B
Shares Out.
7.56 B
EPS (TTM)
$3.35
P/E Ratio
11.82
Forward P/E
10.60
Dividend Yield
2.63%
Beta
1.25
Ex-Div Date
Jun 6, 2025
Earnings Date
Apr 15, 2025
Trading at a mid-teens P/E with a solid dividend yield, Bank of America’s diversified business mix and strong capital ratios underpin its earnings stability.
Quarterly Revenue & Net Income
Revenue rose from $23.9 B in Q2 2024 to $25.9 B in Q1 2025, while net income to company climbed from $6.9 B to $7.4 B—reflecting improving net interest margins and expense control.
Margin Trends
Operating margins have held above 30%, and profit margins around 28–29%, demonstrating resilient profitability as interest rates have firmed.
Valuation Metrics
With a PEG under 1.0, BAC’s forward P/E of 10.6 and P/B near 1.1 suggest attractive valuation relative to global banking peers.
Balance Sheet Snapshot
BAC holds ~$274 B in cash, $757 B in debt (net cash ~$228 B), with a debt/equity ratio of 2.56 and a current ratio of 1.29.
Quarterly Stock Performance
BAC’s share price ranged from ~$39 to $44 over the past year, reflecting sensitivity to rate moves and bank sector sentiment.
Risks & Opportunities
Risks
Economic downturn could spur loan losses.
Regulatory/compliance pressures remain elevated.
Margin compression if rates stabilize.
Intense competition across financial services.
Opportunities
Higher rates boosting net interest income.
Growth in digital banking and wealth management.
ESG and sustainable finance product demand.
Cross-sell synergies across global operations.
Conclusion
Bank of America’s improving margins, strong liquidity and attractive valuation support a positive medium-term outlook, balancing yield with potential capital appreciation.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult a licensed financial advisor.
