Bank of America might be an overnight success story — three decades in the making.
BofA and other banks are benefiting from the widening margin between what they pay on deposits and what’s earned from interest on loans. While that’s bullish for banks, the slowing economy sparks concern that more loans will go bad. “There’s a convenience factor. So are you really going to move your $10,000 average balance to save $100 a year? Not so much. This is three decades in the making at Bank of America to create such a durable, sustainable deposit franchise that can withstand a period of higher rates and actually benefit,” Mayo said on CNBC this week while discussing his new research report on BofA.
Even as BofA now goes up against upstarts such as Chime, Varo Bank and SoFi, the larger bank still has the upper hand as some see it. “The tech revolution and expense control differentiates BofA,” said Mayo, who expects BofA’s revenues to increase by $10 billion this year, with expenses rising only $3 billion. The Wells analysts boosted their 2023 earnings-per-share estimate for BofA by 10 cents to $3.95 and 2024 earnings-per-share estimate by 5 cents to $4.40.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Herkunft: SFBusinessTimes - 🏆 78. / 68 Weiterlesen »
Herkunft: FXStreetNews - 🏆 14. / 72 Weiterlesen »