What to Expect from Bank of America’s 3Q15 Earnings
Upcoming earnings announcement
Bank of America Corporation (BAC) has scheduled its 3Q15 earnings report on October 14, 2015, at 7:00 AM, EST. Shares of Bank of America closed at $15.58 on October 9.
So far in 2015, shares of Bank of America have underperformed the financial sector as well as the broad market. The Financial Select Sector SPDR ETF (XLF), which represents the financial sector, has lost 6.0% on a YTD (year-to-date) basis. In comparison, Bank of America, which constitutes 5.8% of the XLF portfolio, has so far plunged by 12.9% during the year.
Performance of peers
From the beginning of 2015 through October 7, banking stocks have been under the knife. Shares of large-cap banks like Goldman Sachs Group (GS), Citigroup (C), Wells Fargo & Company (WFC) and JP Morgan Chase (JPM) have underperformed. They have so far generated negative YTD returns of -7.6%, -5.0%, -4.9%, and -1.0%, respectively. Morgan Stanley is the worst performer among large-cap banks and has seen its stock fall by 15.6% so far during 2015.
Company overview
Bank of America is an American multinational bank. On October 8, 2015, it had a market capitalization of $164.2 billion, making it the second-largest bank holding company in the United States by assets. As of December 2014, the company had assets of $2.1 trillion and revenues of $85.1 billion.
The bank’s 2008 acquisition of Merrill Lynch made Bank of America the world’s largest wealth management corporation and a major player in the investment banking market. The company operates in five segments: Consumer & Business Banking, Consumer Real Estate Services, Global Wealth & Investment Management, and Global Banking and Global Markets.
Read the next part of this series for a further look at expectations for Bank of America’s 3Q15 earnings report.
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