Today, analyst Anand Chokkavelu reports that Bank of America was able to turn in a profitable quarter, though just barely, at an EPS of $0.00. But here are three things to fear from the release:
1. The company notes an 18% increase in its mortgage business. That equates to extra loans of $3 billion to 4 billion. Compare that with the $15.9 billion in loans it lost versus last year by shuttering its correspondent lending business, and it doesn't seem that impressive
2. Total loans were down versus last year. Although many of these moves are good (correspondent lending), B of A, along with Citigroup, is distracted while Wells Fargo and JPMorgan Chase are crushing it on mortgages.
3. Another $1.6 billion of litigation expenses is a big cloud over B of A that continues to keep shares cheap.
Overall, Anand remains bullish on Bank of America, even despite these concerns.