Bank of America (NYSE: BAC) had a so-so quarter, which was slightly disappointing compared to the outperformance of big banking competitors Citigroup
For the quarter, earnings per share excluding merger charges increased 8% over last year to $1.17. On the bright side, noninterest income rose 10%, helped by strong showings in debit cards, investment and brokerage services, investment banking, and wealth management. On the other hand, net interest income fell 6%, partially because of a shift to higher cost deposits thanks to the competitive deposit environment.
For the most part, credit quality was stable, with no major red flags in the main ratios. Net charge-offs in the residential mortgage portfolio were for the most part negligible. Although management had previously remarked that its proprietary trading desks would take a hard look at subprime loans if the price was right, the company so far hasn't made any sizable inroads into this area.
As we saw at American Express
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Fool contributor Emil Lee is an analyst and a disciple of value investing. He doesn't own shares in any of the companies mentioned above. Emil appreciates your comments, concerns, and complaints. The Motley Fool has a disclosure policy.