Putting an end to the concerns surrounding Bank of America's
third-quarter 2014 earnings following its huge mortgage settlement,
the company came out with a year-over-year improvement in adjusted
(restated) earnings. Well-controlled expenses and
better-than-expected top line growth supported the results.
However, a rise in provision for credit losses as well as lower
mortgage banking and equity investment income were the dampeners.
We expect measures like balance-sheet restructuring,
expense-reduction and branch consolidation to bolster the company's
growth prospects. Further, the company has been witnessing
improvement in asset quality and strong capital ratios.
Nevertheless, persistent pressure on the top line, prevailing
low-rate environment and various regulatory and litigation issues
will continue to impact the company's near-term performance.
Headquartered in Charlotte, NC, Bank of America Corporation is a
financial holding company. Its banking and non-banking subsidiaries
across the U.S. and in other international markets provide a
diverse range of banking and non-banking financial services and
In Oct 2014, Bank of America completed the merger of its
subsidiary FIA Card Services, National Association (FIA) into Bank
of America, National Association (BANA), in sync with its plan to
streamline and simplify the legal entity.
Bank of America conducts its operations through the following
The Consumer and Business Banking (CBB) segment, comprising
Deposits and Consumer Lending businesses, provides a wide range of
credit, banking and investment products and services to consumers
The Consumer Real Estate Services (CRES) segment includes Home
Loans and Legacy Assets & Servicing. The segment originates
first and second-lien mortgage loans. The first-lien mortgage loans
are generally sold into the secondary mortgage market or to
Corporate Investments in the All Other segment while retaining
servicing and the customer relationship. Second-lien mortgages are
retained on the segment's balance sheet. The segment services
mortgage loans including those it owns, loans owned by other
segments as well as those owned by outside investors.
The Global Banking segment, which includes Global Corporate and
Global Commercial Banking, as well as Investment Banking, offers a
diversified range of lending-related products and services,
integrated working capital management and treasury solutions to
clients through the network of offices and client relationship
teams along with various product partners. Lending products and
services include commercial loans and commitment facilities, real
estate lending, asset-based lending and indirect consumer
The Global Markets segment offers sales and trading services,
including research, to institutional clients across fixed-income,
credit, currency, commodity and equity businesses. The segment
provides market-making, financing, securities clearing, settlement
and custody services globally to the institutional investor clients
in support of their investing and trading activities. It also works
with commercial and corporate clients to provide risk management
products using interest rate, equity, credit, currency and
commodity derivatives, foreign exchange, fixed-income and
The Global Wealth & Investment Management (GWIM) segment
comprises two main businesses Merrill Lynch Global Wealth
Management and U.S. Trust, Bank of America Private Wealth
Management. The segment offers investment and brokerage services,
estate management, financial planning services, fiduciary
management, credit and banking expertise, as well as diversified
asset management products to institutional clients and also to
affluent and high-net-worth individuals.
The All Other segment consists of two broad groups, Equity
Investments and Other. Equity Investments includes Global Principal
Investments, strategic and other investments. Other comprises
liquidating businesses, merger and restructuring charges, ALM
functions and related activities and the impact of certain
allocation methodologies. Other also includes certain residential
mortgage and discontinued real estate products that are managed by
Legacy Assets and Servicing within CRES segment.
Bank of America operates in 50 states, the District of Columbia
and in more than 40 countries. It has approximately 4,947 retail
banking centers, about 15,675 automated teller machines (ATMs),
nationwide call centers as well as online and mobile banking
Bank of America Corporation (BAC): Read the Full
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