Bank of America reported its first-quarter earnings, and investors were underwhelmed. In this video, Matt Koppenheffer compares Bank of America's performance with Wells Fargo's. By all metrics, Wells Fargo did better. Loan origination, return on equity, and return on assets all favored Wells Fargo. For investors, the only advantage Bank of America offers is that it currently trades at a significant discount to book value, while Wells Fargo trades at a premium. Matt believes Bank of America has to improve its new loan portfolio and other financial metrics in order to stay competitive with Wells Fargo.
The market did not take Bank of America's Q1 earnings well. What else could go wrong?
About the Author
Matt is the head of the Coverage Team for The Motely Fool's premium products. Previously, he's been . Matt is a heavy user of AI tools and is working on harnessing them to help Fool members. Previously, Matt was GM of Motley Fool Ascent, led The Motley Fool Deutschland, has been an investor on various Fool services, and co-hosted the podcast "Where the Money Is". He also co-authored the book The Astonishing Collapse of MF Global. Matt started his career in San Francisco as a technology-focused investment banker and also worked at a $15 billion private equity company. When he's thinking about how to make Fools smarter, happier, and richer, you can usually find Matt running trails or making a mess in the kitchen. He's a graduate of the University of Pennsylvania, but is a lifelong fan of Penn State football.
