Latest news with #BrianMoynihan
Forbes
7 hours ago
- Business
- Forbes
U.S. Banks Rush To Catch Up On Crypto As GENIUS Act Ushers In Crypto
WASHINGTON, DC - (L-R) Brian Moynihan, Chairman and CEO of Bank of America; Jamie Dimon, Chairman ... More and CEO of JPMorgan Chase; and Jane Fraser, CEO of Citigroup. (Photo by) As the United States takes a historic step toward regulating digital assets, major banks are reevaluating their strategies for staying relevant in an increasingly crypto-driven economy. The Guiding and Establishing National Innovation for U.S. Stablecoins, known as the GENIUS Act, which was signed into law on July 18, 2025, by President Donald Trump, establishes the country's first federal framework for payment stablecoins. For traditional financial institutions, the new law could be a green light or a wake-up call. From stablecoin development to crypto-collateralized loans, legacy banks are now under pressure to modernize their offerings or risk losing ground to digital-first competitors. But with regulatory clarity emerging only now, some institutions may be late to the game. 'President Trump was crystal clear on the campaign trail: under his leadership, the United States will be the crypto capital of the world,' said Sen. Tim Scott, R-S.C., chairman of the Senate Banking Committee. 'With his signature on the GENIUS Act, we've made history and have delivered important regulatory clarity for the stablecoin industry.' GENIUS Act: A Landmark Shift For Digital Assets The GENIUS Act passed both chambers of Congress with bipartisan support following months of debate and over 40 proposed amendments. The bill, spearheaded by Sens. Bill Hagerty, R-Tenn.; Cynthia Lummis, R-Wyo.; Kirsten Gillibrand, D-N.Y.; and Angela Alsobrooks, D-Md., lays the foundation for how payment stablecoins can be issued, managed, and regulated in the United States. Stablecoins have grown into a multibillion-dollar sector used by traders, businesses, and cross-border payment providers. Until now, they operated in a largely unregulated environment, prompting concerns about consumer protection, systemic risk, and monetary policy implications. Under the new law, stablecoin issuers are required to maintain 100% reserve backing, undergo regular audits, and register with the relevant regulatory authorities. The law also prohibits algorithmic stablecoins that are not backed by tangible assets, addressing recent high-profile collapses that have shaken confidence in the space. Senator Scott, who made digital asset oversight a priority upon assuming leadership of the Senate Banking Committee, said the bill was the result of months of bipartisan negotiation and input from legal experts, industry stakeholders, and regulators. 'This legislation will support working families, small businesses, and communities across America with faster, cheaper, and more accessible payments,' Scott said. 'It will also solidify the U.S. dollar's dominance across the world.' Banks Begin To Engage With Crypto Following the bill's passage, U.S. banks are beginning to take action. JPMorgan Chase is reportedly developing a new product that would offer loans backed by clients' cryptocurrency holdings, including Bitcoin and Ethereum. The product could launch as early as next year, according to the Financial Times. The move signals a broader shift within JPMorgan, whose CEO, Jamie Dimon, has been one of Wall Street's most vocal critics of Bitcoin. Other large banks are going a step further. Bank of America CEO Brian Moynihan stated the firm is actively working on launching a stablecoin, though no timeline has been announced. Citigroup is also signaling interest. CEO Jane Fraser confirmed that the bank is exploring the issuance of a Citi stablecoin to facilitate faster and more secure digital payments. TradFi Playing Catch-Up In A Tokenized World For years, traditional financial institutions were slow to engage with digital assets, often citing unclear regulations and reputational risks. Some even closed accounts linked to crypto businesses or blocked crypto transactions outright. The regulatory environment is shifting rapidly. In addition to the GENIUS Act, Congress is debating the Digital Asset Market CLARITY Act, known simply as the CLARITY Act, which passed the House last week with broad bipartisan support. A Senate draft, released by Chairman Scott and Senators Lummis, Hagerty, and Bernie Moreno, proposes further guardrails and designates the roles of the SEC and CFTC in overseeing different classes of digital assets. The draft aims to clarify how tokens are classified, whether as securities or commodities, and calls on the SEC to 'tailor existing requirements to digital asset activity.' For banks, this means that regulatory ambiguity is no longer an excuse for inaction. Chris Dixon, founder and managing partner at a16z crypto, said of the CLARITY Act: 'This bill protects consumers, supports builders and investors, and keeps crypto innovation in the U.S. Now we need it on the House floor and moving to the Senate. Let's get it done.' Can Banks Catch Up? Stablecoin Growth And The GENIUS Act Raise Stakes The shift presents a strategic decision for banks. They must decide whether to compete with existing stablecoin providers, such as Circle and Tether, or integrate existing stablecoins into their financial services. Visa reports that adjusted stablecoin transaction volume has grown 58% over the past year, while the number of transactions has increased by 35% as of August 2024. Much of that activity is concentrated on centralized exchanges, which account for 41% of stablecoin volume and 24% of transaction count. These tokens are already deeply embedded in decentralized finance (DeFi), international remittances, and institutional liquidity operations. The GENIUS Act's requirements for transparency, reserve audits, and federal registration could create an opportunity for banks to compete on trust and compliance, areas where traditional institutions already have an edge. But the challenge is timing. Fintech firms and crypto-native companies have moved fast, partnering with global exchanges, wallet providers, and payment processors. The longer banks wait to launch products, the greater the risk that network effects lock in other providers. As Crypto Policy Advances, Banks Face Challenges Despite the GENIUS Act's passage, not all questions have been answered. Banks still face uncertainty on how digital assets will be taxed, how custody services will be regulated, and how their stablecoins will interact with future central bank digital currencies (CBDCs) that may emerge from the Federal Reserve or other monetary authorities. Nevertheless, the political landscape has undergone significant changes. President Trump championed the GENIUS Act as a way to make the U.S. 'the crypto capital of the world,' and bipartisan cooperation on digital asset regulation appears to be growing. Bottom Line: It's Now Or Never For Banks The GENIUS Act is a milestone in digital asset policy in the United States, creating a new opportunity for traditional banks to compete in the stablecoin market. With legal clarity emerging and bipartisan support in Washington, institutions such as JPMorgan, Bank of America, and Citigroup are now exploring how to integrate crypto products into their offerings. Whether these efforts will be sufficient remains to be seen. However, the message from lawmakers is clear. The digital dollar era has begun, and financial institutions that move first may gain a significant advantage.
Yahoo
a day ago
- Business
- Yahoo
Is Bank of America Stock a Buy, Sell, or Hold After Q2 Earnings?
It's earnings season again — a time when investors sift through numbers, forecasts, and fine print to try to make sense of a market shaped by tariffs, tightening wallets, and mounting macro pressure. While Wall Street's mood has been steady — even optimistic — not every heavyweight is riding the wave smoothly. One of the world's largest financial institutions, Bank of America (BAC) stepped into the spotlight with second-quarter earnings that beat on profit but missed on revenue, evidently one among many major U.S. banks weighed down by softer-than-expected net interest income (NII). Despite loan and deposit growth, lower interest rates have clipped some of the gains. CEO Brian Moynihan remains upbeat, pointing to four-straight quarters of NII gains. Still, the Street seems unconvinced. More News from Barchart It's Never 'Happened in the History of Tech to Any Company Before': OpenAI's Sam Altman Says ChatGPT is Growing at an Unprecedented Rate Ditch 'Basic' Nvidia and Buy This 'Unique' Chip Stock Instead Tesla Earnings, Powell Speech and Other Can't Miss Items this Week Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Investors are left to decode whether the underwhelming revenue is a speed bump or an early warning sign. With economic winds shifting and market momentum in flux, is BAC stock a wise portfolio addition, a chance for investors to lock in gains, or a hold for the patient investor? About Bank of America Stock Based in Charlotte, North Carolina, Bank of America is a financial giant offering banking, lending, and investment services to individuals, businesses, and institutions. With global reach and digital strength, BofA stands as a key player in the evolving world of finance. Its market capitalization currently stands at $356 billion. BAC stock has had its share of quiet spells, returning just 10% over the past 52 weeks. But the tide has turned sharply in recent months. Up more than 26% in just three months, BAC hit a 52-week peak of $49.31 on July 3. Soon after came the Q2 earnings, and the stock dipped slightly. But investors didn't flinch for long. Just a session later, on July 17, BAC rebounded over 2%, regaining momentum and positioning itself for a potential breakout back toward recent peaks. BofA has quietly built a reputation as a capital-return machine. The company has been a reliable dividend payer for over three decades. For 12 straight years, it has raised the payout. Most recently, BofA announced an 8% hike to $0.28 per share starting Q3 2025, pushing its annualized yield to 2.38%, well above the S&P 500's (($SPX) 1.14% yield. But dividends are just part of the story. In August 2024, BofA authorized a fresh $25 billion share repurchase program. This dual strategy of rising payouts and aggressive repurchases signals a sharp focus on shareholder value, without compromising its strong capital base or long-term growth ambitions. A Closer Look at Bank of America's Q2 Earnings Results BofA rolled out its Q2 2025 earnings report on July 16 with a performance that balanced resilience against a few underwhelming beats. EPS rose 7.2% year-over-year (YOY) to $0.89, edging past the $0.86 consensus. Revenue, despite growing 4.3% YOY to $26.5 billion, came in below Street expectations. The top line was weighed down by a softer net interest income (NII) print of $14.82 billion, which came in $70 million short of forecasts. NII, the backbone of the bank's core lending business, benefited from fixed-rate asset repricing and steady deposit and loan growth, but lower interest rates blunted the upside. Still, it wasn't all softness. Trading remained a bright spot, with sales and trading revenue jumping 14% to $5.3 billion, logging its 13th-straight quarter of segment revenue growth. Fixed-income and equity trading grew 19% and 10%, respectively. However, investment banking fees dropped 9%, dragged by declines in underwriting and advisory revenues. On the credit front, provisions rose 6% to $1.6 billion, while net charge-offs dipped slightly. Capital buffers stayed robust, with the Common Equity Tier 1 (CET1) ratio steady at 13%. However, profitability efficiency slipped slightly, as the efficiency ratio rose to 64.58% from 63.86% a year ago — a move that typically signals growing operational pressure. The balance sheet remained solid, with average deposits growing 3% to $1.97 trillion, the eighth-straight quarter of sequential growth. Meanwhile, loans rose 7%, and average global liquidity sources reached $938 billion. Plus, BofA returned $7.3 billion to shareholders — 2 billion through dividends and $5.3 billion in share repurchases – reinforcing capital strength amid uneven revenue traction. Despite a record NII on a fully taxable-equivalent basis, the bank's elevated efficiency ratio and revenue miss left investors weighing growth potential against looming macro uncertainties. Looking ahead, BofA's management remains upbeat. CEO Brian Moynihan sees artificial intelligence (AI) as a game-changer, streamlining operations beyond anything previous tools allowed. The bank expects Q4 NII to be between $15.5 billion and $15.7 billion. CFO Alastair Borthwick echoed the focus on capital efficiency, pledging to pull every lever to keep spending tight and returns strong. Analysts tracking BofA anticipate the 2025 bottom line to grow about 12% YOY to $3.67 per share, then rise another 16% to $4.27 per share in fiscal 2026. What Do Analysts Expect for Bank of America Stock? Following the quarterly results, Oppenheimer analyst Chris Kotowski trimmed BAC stock's price target to $55 from $57, maintaining an 'Outperform' rating. The quarter, while directionally on track, slightly missed the mark — pretax figures came in a bit light, but a favorable tax rate helped soften the blow. Despite the soft spots, Wall Street remains bullish. BAC still holds a 'Strong Buy' consensus, keeping its status as a steady favorite in the financials space. Out of 25 analysts with coverage, 17 suggest a 'Strong Buy" rating, five advise a 'Moderate Buy,' and three have a 'Hold' rating. The average analyst price target of $52.64 indicates potential upside of about 11% from current price levels. For the bold bulls, the Street-high target of $59 suggests that BAC could rally as much as 25% from here. On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Connectez-vous pour accéder à votre portefeuille
Yahoo
4 days ago
- Business
- Yahoo
Bank of America reports Q2 earnings beat
Bank of America (BAC) reported second quarter adjusted EPS of $0.89, beating estimates of $0.85, with revenue near $26.5 billion. Yahoo Finance Reporter Josh Schafer highlights the latest report and CEO Brian Moynihan's comments on consumers maintaining steady spending. To watch more expert insights and analysis on the latest market action, check out more Morning Brief: Market Sunrise here. Breaking news. Bank of America just reporting second quarter earnings. The bank posted adjusted earnings per share of of 89 cents per share, higher than analyst expectations of 85 cents per share, and that and then revenue coming in at 26 and a half billion dollars. That's roughly in line with estimates. You can see on your screen now, stock rising in reaction up about two almost 2% at one point. Now up a little bit over 1%. I do want to highlight a quote from Bank of America CEO Brian Moynihan. He had some commentaries on the US consumer, saying quote, consumers remain resilient with healthy spending and asset quality, and commercial borrower utilizations rates rose. So a healthy consumer is what Bank of America is seeing here, and I want to get you a couple other key numbers within this release. So net interest income for the second quarter from Bank of America coming in at 14.67 billion. That was above estimates for 14.6 billion. So slightly above estimates there. A key metric, though, that seems to maybe be driving this stock higher right now, I want to look at trading revenue. Trading revenue in the second quarter for BofA coming in at 5.38 billion. The street was looking for 4.94 billion, so a pretty big beat on trading revenue there. Now remember, that was a story we had been following yesterday as well. Uh, city also going up higher yesterday on trading revenue, of course, this follows a relatively volatile market quarter for the second quarter in tariff reactions. So you're seeing the banks sort of benefiting from some of that. We'll be watching how that impacted Goldman Sachs and Morgan Stanley later on today. And then I also want to take a look at different sides of this stock move you're seeing right now. So Bank of America up almost 2% right now, but you're looking at that one-year chart stock. It only been up 10%. You flip over to JP Morgan's estimates from yet or earnings from yesterday, stock didn't really move well on relatively strong earnings, but stock had been up over 40% over the past year. So perhaps you're seeing a little bit of a difference there. A final number I want to bring you from BofA, looking at the second quarter, investment banking revenue coming in at 1.43 billion. That was above estimates slightly, and that was an interesting metric. Yeah, above estimates for 1.27 billion. Yesterday, remember, JP Morgan investment banking had been a key metric for them. Investment banking had come in higher than expected. We've been watching sort of as we delve into these releases, and certainly you'll be able to see this in Morgan Stanley and Goldman Sachs later this morning, how the pickup in the M&A market, pickup in the IPO market, might be impacting deal making and that part of the business. Overall, relatively solid report it seems from Bank of America. Market seems to be enjoying this one. Again, stock up almost 2%. We'll be keeping a close eye on that earnings call later this morning, and we'll be giving you more updates on the financial sector throughout the morning on our morning brief show later.
Yahoo
5 days ago
- Business
- Yahoo
BofA's Moynihan Says Fed Won't Cut Rates Until Next Year
Bank of America CEO Brian Moynihan says the bank expects the Federal Reserve to lower interest rates by 100 basis points in the second half of next year during an interview with David Westin on Bloomberg Television. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Zawya
5 days ago
- Business
- Zawya
Bank of America profit beats estimates as market turmoil boosts trading
Bank of America beat estimates for second-quarter profit on Wednesday, driven by tumultuous markets that helped its traders bring in more revenue, while its interest income also rose. Banks' trading desks benefited from market turbulence as clients reacted to shifting U.S. trade policies and escalating geopolitical tensions during the second quarter. The bank's shares, which have gained over 4% this year, fell nearly 1% after markets opened. BofA's stock has underperformed its major peers and the broader KBW Bank Index in 2025. Peers JPMorgan Chase and Citigroup also beat second-quarter profit estimates, helped by gains in their trading divisions. "We continue to see solid consumer spending," and commercial loan growth, Bank of America CEO Brian Moynihan told analysts. "Our clients continue to see clarity with the changes in trade and tariffs, and now with the tax bill passing, we can see them start to understand the future and expect them to behave accordingly." BofA's sales and trading revenue jumped 15% to $5.4 billion, notching a record for the second quarter and marking 13 consecutive quarters of year-over-year revenue growth. In trading, equities revenue surged 10%, also hitting a record for the latest quarter, while fixed income, currencies, and commodities revenue jumped 19%. "We're also benefiting right now from repositioning - a lot of geopolitical uncertainty, a lot of rate changes, elections last year leading to new policies this year, supply chain changes," Chief Financial Officer Alastair Borthwick told reporters. BofA's profit was $7.1 billion, or 89 cents per share, for the three months ended June 30, compared with $6.9 billion, or 83 cents per share, a year earlier. Wall Street had expected BofA to earn 86 cents a share in the quarter, according to estimates compiled by LSEG. The lender set aside $1.6 billion in provisions for credit losses in the second quarter, compared with $1.5 billion a year earlier. RECORD NII Rate cuts by the Federal Reserve last year have helped reduce the cost of deposits for banks, allowing them to pocket more net interest income - the difference between what they earn on loans and pay on deposits. BofA's NII rose 7% to a second-quarter record of $14.7 billion, thanks to fixed-rate asset repricing as well as deposit and loan growth. On a fully-taxable equivalent basis, BofA reported record NII for any quarter, it said. The bank had previously forecast record NII for 2025, and Moynihan reiterated that target last month. BofA continues to expect higher NII in the second half of 2025, Borthwick said. The bank reiterated that its interest income would reach $15.5 billion to $15.7 billion in the fourth quarter. Average loans and leases rose 7% to $1.13 trillion in the quarter, growing broadly across its businesses. BofA expects to see loan growth in mid-single-digit percentages in the second half, Borthwick said. The bank also expects its expenses to flatten or decline in 2025. Moynihan said the bank is working to keep headcount down. Bank of America's headcount rose marginally to 213,388 as of June 30. INVESTMENT BANKING LAGS BofA's investment banking fees slid 9% to $1.4 billion in the second quarter, lagging rivals. Investment banking fees rose 7% at JPMorgan, 13% at Citigroup and 9% at Wells Fargo, which benefited from rebounding activity at the end of the quarter. Dealmaking stalled in April over U.S. President Donald Trump's shifting trade policies, geopolitical tensions, and elevated interest rates. However, banking executives and analysts have expressed optimism about merger and acquisition opportunities and foresee more transactions in the second half. BofA said it was encouraged by rebounding activity in May and June. Last month, BofA projected investment banking fees to be roughly $1.2 billion, while trading revenue was expected to grow by mid- to high-single digits. Bank of America said the bank and industry have been working on understanding demand for stablecoin, and investors can expect the company to move forward on it. The lender had earlier said it could launch stablecoins. Stablecoins, a type of cryptocurrency designed to maintain a constant value, are commonly used by crypto traders to move funds between tokens. Some analysts expressed concerns over the bank's long-term growth potential. "We think BofA faces more risk in traditional lending to consumers and small businesses if the jobs market faces challenges ahead," said Kenneth Leon, director of equity research at CFRA Research. "While we expect BofA to benefit from rising capital markets activity, we believe there are better-positioned peers to capitalize on investment banking," he added.
