Bank Of America: I Expect It To Report Strong Net Income In The Following Years


  • Bank of America’s 3Q 2022 net income was higher than in 2Q 2022 and lower than in 3Q 2021.
  • Using the FCFE model, I evaluate that BAC is worth more than $43 per share.
  • BAC’s efficiency ratio has been improving in the past years.

Bank of America Plaza


Year to date, Bank of America’s (NYSE:BAC) stock price is down by 19%. According to the company’s 3Q 2022 financial results, its net income decreased by 8% YoY. However, compared with the second quarter of 2022, its net income

Table 1 - Valuation of Bank of America

Author’s calculations based on SA data and BAC’s financial reports

Figure 1 – BAC’s efficiency ratio

Author (based on SA data)

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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