Latest news with #BAC
New Straits Times
a day ago
- Sport
- New Straits Times
Herry warns rivals not to write off Aaron-Wooi Yik, Wei Chong-Kai Wun
KUALA LUMPUR: National coach Herry IP has warned rivals not to write off Aaron Chia-Soh Wooi Yik and Man Wei Chong-Tee Kai Wun despite their off-colour performances at the Japan Open in Tokyo. Herry, fondly known as the Fire Dragon, has called on his charges to show their class and bounce back at next week's China Open. World No. 2 Aaron-Wooi Yik, who were on a hot streak with three titles in as many months, crashed out in the first round to independent compatriots and world No. 30 Ong Yew Sin-Teo Ee Yi. World No. 7 Wei Chong-Kai Wun, meanwhile, were no match for South Korea's world No. 3 Kim Won Ho-Seo Seung Jae, falling in straight games in the quarter-finals at the Tokyo Metropolitan Gymnasium. "Our men's doubles pairs were not up to scratch and failed at the Japan Open, but I want to make sure they bounce back and perform better in China," said Herry. "Winning and losing is part of the game, but we must evaluate our performances, build on our strengths and improve on our weaknesses. "I will sit with the players for video analysis to rectify shortcomings and ensure we're fully prepared for the China Open." It's not the first time Herry has had to rally his players. After a poor showing at the All England in March, he helped reignite their form. Since April, Aaron-Wooi Yik have picked up titles at the Badminton Asia Championships (BAC), Thailand Open and Singapore Open, while Wei Chong-Kai Wun lifted the Malaysia Masters crown.
Yahoo
3 days ago
- Business
- Yahoo
PPI Remained Unchanged
Pre-market futures are climbing into the green this morning, following a cooler-than-expected wholesale inflation report and better-than-expected financial Q2 earnings numbers out before the bell today. After starting off roughly -0.1% across the board, we're currently up +160 points on the Dow, +13 points on the S&P 500 and +14 on the Nasdaq. The small-cap Russell 2000, which yesterday shed -2% in regular trading, is +15 points presently. PPI Data Lower than Expected: A Pull-Forward in Effect? This morning, the latest Producer Price Index (PPI) was released for the month of June. Following yesterday's Consumer Price Index (CPI) — the retail print on monthly inflation — today's PPI reflects the wholesale side. Headline PPI for June, month over month, reached 0.0% — lower than the +0.2% expected and 30 basis points (bps) below the upwardly revised +0.3% from the prior month. Subtracting volatile food and energy costs on the producers' side, core PPI was also 0.0%, as was the latest ex-food, energy and trade read: 0.0%. These are down from the upward revisions on both metrics of +0.4% and +0.1%, respectively. These are also the coolest inflation prints on PPI since April of this year — the month President Trump brought tariffs to bear. PPI year over year on headline came in at +2.3%, 30 bps below expectations and the lowest since +2.1% reported in September of last year. Core PPI year over year reached +2.6%, a notch below estimates and -40 bps from the May print of +3.0%. Year over year, ex-food, energy and trade, we see +2.5% — 20 bps under estimates and the slimmest wholesale inflation print since November of 2023. Coming as these numbers are within the static of a U.S. tariff policy with constantly moving goalposts, we can attribute some of this surprise to a likely pull-forward from the months prior. Lower wholesale inflation — especially when we saw warmer-than-expected retail inflation in the CPI numbers yesterday — quite likely means supplies had been sufficient in previous months to not be beholden to higher sticker prices in the month of June. To the extent this data funnels into Fed-preferred metrics on overall inflation, we still see these PPI numbers above optimal inflation levels of +2.0%. In fact, since the Great Reopening as the Covid pandemic dimmed four years ago, we've never gotten back down to +2.0% inflation. Then again, as we mentioned in this space yesterday, +2.0% inflation is a notion very likely on borrowed time; once Fed Chair Jerome Powell is replaced, we expect the overall narrative to change. Q2 Earnings Roundup: Financials and More After Tuesday kicked off Q2 earnings season for some of the biggest banks on Wall Street, today we see a continuation: Bank of America (BAC) posted a 3-cent beat to 89 cents per share (6 cents higher than the year-ago quarter) for a +3.5% earnings surprise. Revenues, however, missed estimates slightly, -0.5%. Better-than-expected loan revenue has helped prop the stock in early trading. Perhaps the best Q2 earnings report so far belongs to Goldman Sachs (GS), which posted a +15.7% earnings surprise this morning: $10.91 per share versus $9.43 expected (which itself was +9.4% higher than the year-ago quarter) on $14.58 billion in quarterly revenues, which easily surpassed the $13.5 billion estimate by +8%. This is a good sign for investment banking overall. But as shares have already climbed +22.7% year to date, this morning's gains are so far slim. Morgan Stanley (MS) also represented strongly for investment banking this morning, with earnings of $2.13 per share on $16.79 billion in revenues for the quarter outpacing the Zacks consensus by +10.36% and +5.5%, respectively. Yet shares are selling a bit ahead of the opening bell, -1.8%, after having doubled the finance sector year to date. Johnson & Johnson (JNJ) shares are up +2% on its impressive Q2 earnings beat this morning, with earnings of $2.77 per share outperforming projections for $2.66 (though still down from $2.82 per share reported in the year-ago quarter). Revenues of $23.7 billion are up nicely from the $22.80 billion expected. CEO Joaquin Doato says he sees a stronger 2H2025 ahead for the pharma/household goods giant. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Bank of America Corporation (BAC) : Free Stock Analysis Report Morgan Stanley (MS) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Globe and Mail
4 days ago
- Business
- Globe and Mail
BAC Q2 Earnings Beat on Robust Trading & NII Growth, Stock Rises
Bank of America 's BAC second-quarter 2025 earnings of 89 cents per share surpassed the Zacks Consensus Estimate of 86 cents. The bottom line compared favorably with earnings of 83 cents in the prior-year quarter. BAC shares gained 1.3% in early trading in response to the better-than-expected quarterly results. A full day's trading session will depict a clearer picture. Behind BAC's Headline Numbers Bank of America recorded an improvement in trading numbers for the 13th straight quarter. Sales and trading revenues, excluding net DVA, grew 14.9% year over year to $5.38 billion. Fixed-income trading fees increased 18.6%, while equity trading income rose 9.6%. We had projected sales and trading revenues (excluding net DVA) of $4.92 billion. This, along with higher net interest income (NII), was the major revenue growth driver for Bank of America. NII grew on a year-over-year basis as fixed-rate asset repricing, and deposit and loan growth were partially offset by the impacts of lower interest rates. However, the investment banking (IB) performance was subdued once again. IB fees (in the Global Banking division) of $767 million declined 8.1% year over year. Equity and debt underwriting income declined 13.3% and 4.7%, respectively. Advisory revenues were down 9.6%. Provisions and non-interest expenses increased in the quarter on a year-over-year basis. The company's net income applicable to common shareholders grew 3.7% from the prior-year quarter to $6.83 billion. Our estimate for the metric was $6.76 billion. BAC's Revenues Improve, Expenses Rise Net revenues were $26.46 billion, which missed the Zacks Consensus Estimate of $26.59 billion. However, the top line increased 4.3% from the prior-year quarter. NII (fully taxable-equivalent basis) grew 6.9% year over year to $14.82 billion. Our estimate for NII was $14.93 billion. Net interest yield expanded 1 basis point to 1.94%. We expected the metric to be 2.03%. Non-interest income increased 1% from the prior-year quarter to $11.79 billion. This was driven by higher total fees and commissions. We had projected non-interest income of $11.78 billion. Non-interest expenses were $17.18 billion, up 5.4% year over year. The rise was due to an increase in almost all cost components except for professional fees. Our estimate for non-interest expenses was $16.96 billion. The efficiency ratio was 64.93%, up from 64.26% in the year-ago quarter. A rise in the efficiency ratio indicates a deterioration in profitability. Bank of America's Credit Quality: A Mixed Bag Provision for credit losses was $1.59 billion, up 5.6% from the prior-year quarter. We estimated the metric to be $1.54 billion. Net charge-offs declined marginally year over year to $1.53 billion. As of June 30, 2025, non-performing loans and leases as a percentage of total loans were 0.52%, unchanged year over year. BAC's Capital Position Strong Book value per share as of June 30, 2025, was $37.13 compared with $34.39 a year ago. Tangible book value per share was $27.71, up from $25.37 a year ago. At the end of June 2025, the common equity tier 1 capital ratio (advanced approach) was 13%, compared with 13.5% as of June 30, 2024. BAC's Share Repurchase Update In the reported quarter, the company repurchased shares worth $5.3 billion. Our Take on Bank of America Bank of America's focus on digitizing and expanding operations, decent loan growth and relatively higher interest rates are likely to keep supporting growth. However, elevated expenses and a challenging operating backdrop pose major headwinds. Currently, BAC carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Performance & Earnings Release Date of BAC's Peers Solid trading and IB performance, and impressive growth in credit card and wholesale loans drove JPMorgan 's JPM second-quarter 2025 adjusted earnings of $4.96 per share. The bottom line handily surpassed the Zacks Consensus Estimate of $4.51. This excluded an income tax benefit of $774 million. Including the one-time gain, JPMorgan's earnings were $5.24 per share. Markets revenues exceeded management's expectations of growth in the mid to high-single-digit range. The metric jumped 15% year over year to $8.9 billion. JPMorgan's IB business performance was also far more robust than expected by management. Total IB fees (in the Commercial & Investment Bank segment) were up 7% from the prior-year quarter to $2.51 billion. Truist Financial Corporation TFC is slated to report quarterly results on July 18. The Zacks Consensus Estimate for Truist's second-quarter earnings has been revised downward over the past seven days. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.) Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Truist Financial Corporation (TFC): Free Stock Analysis Report
Globe and Mail
4 days ago
- Business
- Globe and Mail
Evaluating BAC's Growth Drivers and Risks Ahead of Q2 Earnings
One of the biggest banks in the United States, Bank of America BAC, is scheduled to announce second-quarter 2025 results on July 16 before the opening bell. Bank of America's first-quarter performance was decent, driven by impressive trading performance and growth in net interest income (NII). This time, the company's performance will likely be solid. The Zacks Consensus Estimate for second-quarter revenues of $26.59 billion suggests 4.8% year-over-year growth. In the past seven days, the consensus estimate for earnings for the to-be-reported quarter has been revised 1.1% lower to 86 cents. This indicates a 3.6% rise from the prior-year quarter, as higher NII and solid trading business are likely to have supported BAC's bottom-line growth. Estimate Revision Trend Image Source: Zacks Investment Research Bank of America has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with the average beat being 6.63%. Surprise History Factors at Play for Bank of America's Q2 Results NII: In the second quarter, the Federal Reserve kept interest rates unchanged at 4.25-4.5%. This is likely to have offered some support to Bank of America's NII as the funding/deposit costs stabilized. Also, despite an uncertain macroeconomic backdrop because of Trump's tariff plans, the overall lending scenario was impressive. Per the Fed's latest data, the demand for commercial and industrial, real estate and consumer loans was solid during the quarter. Hence, BAC is expected to have witnessed a modest rise in loan demand. Likewise, its peers, JPMorgan JPM and Citigroup C, are likely to have recorded a robust loan demand. BAC expects NII (fully tax equivalent) to grow sequentially in the quarter. The Zacks Consensus Estimate for NII of $14.86 billion suggests a 7.2% year-over-year increase. Our estimate for NII is $14.93 billion. Investment Banking (IB) Fees: Global mergers and acquisitions (M&As) in the second quarter of 2025 were impressive than previously expected. Markets plunged in early April as Trump announced sweeping tariffs, which hurt business confidence. But as trade demands eased and policy direction became clearer, deal-making activities resumed in the last month of the quarter. So, Bank of America's advisory fees are likely to have recorded a marginal rise. Further, the IPO market witnessed a revival during the to-be-reported quarter, with a significant increase in both the number of IPOs and the amount of capital raised. This was driven by several factors, including strategic tariff pauses and positive economic data, which resulted in a rebound in market sentiment. Also, global bond issuance volume was decent. So, BAC's underwriting fees (accounting for almost 40% of total IB fees) are expected to have recorded an increase during the to-be-reported quarter. Management expects IB fees to decline more than 20% year over year in the quarter as tariff-related headwinds continue to hamper deal-making sentiments. The Zacks Consensus Estimate for IB income of $1.32 billion indicates a decline of 15.6% from the prior-year quarter. We expect IB income to be $1.52 billion. Trading Income: Client activity and market volatility were strong in the second quarter. The uncertainty over the impact of tariffs on the U.S. economy and the Fed's monetary policy drove client activity as investors shifted to safe havens. Volatility was high in equity markets and other asset classes, including commodities, bonds and foreign exchange. Thus, BAC is likely to have recorded a solid performance in trading revenues this time. Driven by heightened market volatility and a rise in client activity, the company projects trading revenues to grow in the mid-to-high single-digit range in the second quarter. The Zacks Consensus Estimate for total sales and trading revenues of $5.11 billion suggests a 9.1% growth on a year-over-year basis. Our estimate for the metric is the same as the consensus estimate. Expenses: While Bank of America managed expenses prudently in the past, expansion into newer markets by opening financial centers and efforts to digitize operations and upgrade existing financial centers are expected to have kept non-interest expenses elevated in the to-be-reported quarter. Our estimate for non-interest expenses is $16.96 billion, suggesting a 4% year-over-year increase. Asset Quality: Bank of America is likely to have set aside a significant amount of money for potential delinquent loans, given the expectations of higher interest rates for longer and the impact of Trump's tariffs on inflation. Our estimate for provision for credit losses is pegged at $1.54 billion. The Zacks Consensus Estimate for non-performing loans (NPLs) of $6.62 billion implies a 21% jump from the prior-year quarter. Also, the consensus estimate for non-performing assets (NPAs) of $6.66 billion suggests a 17.1% rise. Our estimates for NPLs and NPAs are pegged at $6.07 billion and $6.32 billion, respectively. What Our Model Unveils About Bank of America's Q2 Earnings Our proven model doesn't predict an earnings beat for Bank of America this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you can see below. Bank of America has an Earnings ESP of -1.13%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. It carries a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here. BAC's Price Performance & Valuation Analysis In the second quarter, BAC shares gained 18.6%, outperforming the S&P 500 Index. In the same time frame, shares of JPMorgan and Citigroup rallied 18.5% and 24.4%, respectively. 2Q25 BAC Price Performance Image Source: Zacks Investment Research JPMorgan and Citigroup are slated to report quarterly numbers on July 15. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Let's check out the value Bank of America offers investors at current levels. The stock is trading at a 12-month trailing price-to-tangible book (P/TB) of 1.76X. This is below the industry 's 2.86X. This shows that the stock is currently inexpensive. Price-to-Tangible Book (TTM) Further, BAC stock is trading at a discount compared with JPMorgan, which has a P/TB of 3.04X. On the other hand, Citigroup has a P/TB of 0.97X, making it inexpensive compared with Bank of America. How Bank of America is Positioned Before Q2 Earnings The interest rate pressure that Bank of America has faced since 2023 has subsided to some extent, and risks surrounding deposit outflows have abated. Also, the industry-wide lending scenario is expected to be strong, and the company is anticipated to gain from it. The company's aggressive branch expansion across the United States as part of a broader strategy to solidify customer relationships and tap into new markets will drive NII growth over time. This will also help capitalize on cross-selling opportunities over the long term. Further, it spends $13 billion annually on technology, of which almost $4 billion will be utilized for new technology initiatives this year. However, BAC continues to face adverse impacts from prolonged higher rates, leading to high deposit costs. Also, the volatile nature of the capital markets business is expected to make fee income growth a challenge. Mounting operating expenses and weak asset quality are other headwinds. While Bank of America's prospects remain promising, investors should not rush to buy the stock. Those interested in adding it to their portfolios might be better off waiting until after the release of quarterly numbers for clarity and a potentially attractive entry point. Those who already have the BAC stock in their portfolio can hold on to it because it is less likely to disappoint over the long term. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of America Corporation (BAC): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report
Yahoo
4 days ago
- Business
- Yahoo
Bank of America Q2 Loans And Deposits Grow, Efficiency Ratio Increases To 64.58%
Bank of America Corp (NYSE:BAC) reported second-quarter fiscal 2025 net income of $7.1 billion (versus $6.9 billion a year ago) and EPS of $0.89, beating the analyst consensus estimate of $0.87. Revenue, net of interest expense, increased 4% year-over-year (Y/Y) to $26.5 billion, missing the analyst consensus estimate of $26.8 billion. Higher net interest income (NII), sales and trading revenue, asset management fees, and lower investment banking fees drove the Banking clocked $2.97 billion versus $2.6 billion Y/Y, Global Wealth and Investment Management was $993 million versus $1.03 billion Y/Y, Global Banking was $1.7 billion versus $2.1 billion Y/Y, and Global Markets was $1.6 billion versus $1.4 billion Y/Y. Investment banking fees (global banking) declined by 9% to $1.4 billion, lagging behind rivals JPMorgan (NYSE:JPM) and Citigroup's (NYSE:C) quarterly growth due to rebounding activity at the end of the quarter. Net interest income was $14.7 billion (+7% Y/Y), driven by Global Markets activity, fixed-rate asset repricing, and loan growth. Last year, the Federal Reserve's rate cuts lowered banks' deposit costs, allowing them to keep more of the difference between loan income and deposit payouts, boosting their net interest income. Noninterest income was $11.8 billion (+1% Y/Y). Provision for credit losses grew 6.7% Y/Y to $1.6 billion. View more earnings on BAC The efficiency ratio for the quarter was 64.58%, compared to 63.86% Y/Y. The bank reported a CET1 ratio of 11.5%, compared to 11.9% a year ago. The book value per share of $37.13 improved by 8%. The average loan and lease balance was $1.13 trillion (+7% Y/Y). Average deposits are up 3% Y/Y to $1.97 trillion. Chair and CEO Brian Moynihan said Bank of America delivered a strong quarter, with earnings per share rising 7% Y/Y. He noted that net interest income increased for the fourth consecutive quarter, driven by steady deposit growth over eight quarters and a 7% rise in loan volume. Consumers showed resilience, maintaining solid spending and strong asset quality, while commercial clients increased their credit utilization. Moynihan also highlighted positive momentum in the bank's markets division and said Bank of America has provided more capital to its businesses and returned 40% more capital to shareholders in the first half of 2025 compared to last year. In the fourth quarter, Bank of America expects a net interest income of $15.5 billion to $15.7 billion. Despite a 24% gain in the last three months, Bank of America's stock is up 5% year-to-date. Global markets have swung wildly since U.S. President Donald Trump announced tariffs on international trading partners in April. That volatility has boosted the markets businesses at Bank of America and other Wall Street firms, as heightened client activity has driven revenue, even as hopes for a strong rebound in mergers and acquisitions have fallen short, Bloomberg reported on Wednesday. Price Action: BAC stock is trading higher by 1.41% to $46.80 premarket at last check Wednesday. Image via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Bank of America Q2 Loans And Deposits Grow, Efficiency Ratio Increases To 64.58% originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
