=Bank of America (BAC) reported earnings on Wed 16 Oct 2019 (b/o)

Bank of America beats by $0.07, reports revs in-line

Reports Q3 (Sep) earnings of $0.75 per share, excluding non-recurring items, $0.07 better than the S&P Capital IQ Consensus of $0.68; revenues rose 0.3% year/year to $22.95 bln vs the $22.73 bln S&P Capital IQ Consensus.

Net interest yield (FTE basis) of 2.41%, declined 4 bps.

"Our teammates delivered another strong quarter of earnings and returns for shareholders. In a moderately growing economy, we focused on driving those things that are controllable. We made continued strong investments in our capabilities to serve customers, more relationship management teammates, more and refurbished branches and offices, and more digital capabilities, all while core expenses are flat. Our client activity, the expansion of our client base, and our ability to gain market share across most of our businesses in the quarter, all reflect responsible growth."

Some notes on peer Q3 performance-

• BAC posted steady results but JPM remains the top earnings for Q3.
• RoEs have been pretty steady in the 9-11% with JPM above the fray at 15%.
• JPM dominating on revenue growth as well. Best in class for net income.
• C and GS still remain the cheapest valuation on a Book basis.
• BAC tops on equity performance, JPM on FICC.
• Loan growth led by BAC and C.

3Q19 Results	MS	JPM	BAC	WFC	C	GS
RoE		15.0%	11.0%	9.0%	10.4%	9.0%
RoTCE		18.0%	15.5%	10.7%	12.2%	9.5%
Rev Growth (Y/Y)		8.0%	0.0%	0.0%	1.0%	-6.0%
Net Income Growth		8.0%	-19.0%	-7.0%	6.0%	-26.0%
TBVPS/Price	1.09x	1.95x	1.57x	1.41x	1.00x	N/A
BVPS/Price	0.93x	1.57x	1.12x	1.20x	1.15x	0.92x
Trading Revs (Bln)		$6.07	$3.20	N/A	$4.50	$3.29
Equity Trading (Bln)		$1.52	$1.14	N/A	$0.76	$1.88
Equity (Y/Y)		-5%	12%	N/A	-4%	5%
FICC Trading (Bln)		$3.55	$2.07	N/A	$3.20	$1.41
FICC (Y/Y)		25%	0%	N/A	0%	8%
3-month Return	-3%	1%	0%	9%	-3%	-4%
Forward P/E		11.1x	10.1x	10.8x	8.3x	8.2x
NIM		2.41%	2.41%	2.66%	2.56%	N/A
Loan Growth Y/Y		0%	4%	1%	4%	N/A