Q1 snap: low provisions and tax drive 5% beat
BAC delivered a 5% adj. EPS beat predominantly driven by lower provisions and a low effective tax rate. WM was strong with 6% growth in revenues augmented by a record pre-tax margin of 29%. Global Markets trading numbers were in line with consensus but net income was well ahead, which could well be due to some one-off gains. The efficiency ratio was 60.1%, in line with consensus at 59.9% and provisions were flat YoY at $834m but 13% below consensus. On the negative side, the NIM was flat due to the roll-off of the UK card business and growth in lower-yielding GM assets. An effective tax rate of 17.6% provided a big boost. In summary, this looks like a good result at the operating level but the 5% EPS beat perhaps flatters the numbers.Bank of America is a bank and a financial holding company. Through its subsidiaries, the company provides a range of banking, investing, asset management and other financial and risk management products and services. The company's segments include: Consumer Banking, which provides credit, banking and investment products and services; Global Wealth & Investment Management, which provides investment management, brokerage, banking and retirement products; Global Banking, which provides lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services; and Global Markets, which provides sales and trading services and research services.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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