Markets

BoA Looks Good in Q1 League Tables

Bank of America ( BAC ) is one of the leading financial institutions in the US and provides a range of products and services like credit cards, mortgages, auto loans, commercial loans, investment banking services and wealth management. Its investment banking division provides debt and equity underwriting services to corporates and merger related advisory services for institutions and competes with other established investment banks such as Goldman Sachs ( GS ), Morgan Stanley ( MS ), Deutsche Bank ( DB ), UBS ( UBS ) and Wells Fargo (WFC). 2010 was a good year for Bank of America as it earned more investment banking fees than any other investment bank in the North and South American region. The bank had a solid start to 2011 according to the figures reported by Thomson Reuters League Tables.

The investment banking division of Bank of America accounts for around 4% of the $15.42 Trefis price estimate , which is about 24% above the current market price.

Mergers & Acquisitions

As of March 14th, Bank of America captured 23% of the M&A market with 67 deals amounting to $148 billion and claimed the second spot behind Morgan Stanley that had 25.3% of market share.

Bank of America's M&A market share in 2010 was 19%, and we estimate its full year 2011 share to be around 21.1%. If it continues to dominate the M&A market through the rest of 2011 and maintained its market share at the current level, the Trefis price estimate for Bank of America will jump by almost 2%.

Equity Capital Markets

The global equity capital markets showed 34% rise in proceeds in the year 2011 up to March 14, 2011 when compared to the previous year. Bank of America had 6.9% of the equity capital markets with 63 deal amounting to $11.4 billion behind Goldman Sachs and Deutsche Bank with 11.9% and 7.2% of the market respectively. Bank of America's share of equity market in 2010 was 6.5% which if increases to about 7% in 2011, will boost Trefis price estimate for Bank of America by nearly 2%.

See our full analysis for Bank of America.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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