Bank Of America Still Has The Credentials To Outperform


  • Like many banks, Bank of America outperformed on net interest income and pre-provision profits in Q3, but with more notable outperformance in operating leverage.
  • Bank of America is unlikely to be a leader in loan growth, but loan demand remains strong and BAC has exceptionally high-rate leverage and operating leverage.
  • Mid-single-digit core earnings growth can still support an attractive double-digit return from here.

Bank of America sign


I’ve liked Bank of America (NYSE:BAC) (“B of A”) for over a year now, and while regional banks have lived up to my expectation of outperformance versus the money center banks, Bank of America has still done well on

Disclosure: I/we have a beneficial long position in the shares of JPM either through stock ownership, options, or other derivatives. 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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