Author Topic: BAC Earnings  (Read 15713 times)

moore_capital54

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BAC Earnings
« on: January 19, 2012, 04:18:26 AM »
Congrats BAC longs, the thesis is starting to play out quite well, we are now earning a return on our position.

tombgrt

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Re: BAC Earnings
« Reply #1 on: January 19, 2012, 04:59:01 AM »
Just saw it. Very nice.

Tier 1 capital and TCE ratio even higher than expected. Dividend hike on the way?

Uccmal

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Re: BAC Earnings
« Reply #2 on: January 19, 2012, 04:59:06 AM »
Indeed....


misterstockwell

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Re: BAC Earnings
« Reply #3 on: January 19, 2012, 05:00:18 AM »
I have no position, but Doug Kass sees things differently


A combination of non-recurring items suggest that BAC's core results were in the red, far from the $0.15 a share reported.
 
Indeed, including a reserve release of 7 cents on top of other non-recurring factors (securities gains, etc.) it suggests that the company, on a recurring basis, had a loss of about 10 cents a share.
 
Revenues were light. Iinvestment banking and equity activity were especially weak.
 
Tangible book value per share dropped from $13.22 to $12.92.
 
So far, in premarket trading, the market is forgiving as the shares are trading up by 44 cents from last night's close.
 
I took a short rental at $7.22.


Position: Short BAC

Parsad

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Re: BAC Earnings
« Reply #4 on: January 19, 2012, 09:31:27 AM »
Room for improvement of course, but I like the trend in all departments.  Primarily stabilization in real estate loan losses and provisions, and overall their loan loss provisions are showing nice drops.  We still have to see the impact from the $5B in operating costs that will be eliminated over the next couple of years...this thing is going to get lean and mean. 

I still see it hitting tangible common equity per share sometime in 2012...so the $12+ range per share.  Based on their legacy loan portfolio, I would prefer if they used capital to increase Tier 1 common equity further, rather than distribute it in dividends.  Some cash spent on share buybacks would be fine with me.  Cheers!     
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ERICOPOLY

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Re: BAC Earnings
« Reply #5 on: January 19, 2012, 09:32:18 AM »
Reserve releases are a non-recurring factor (however of course the elevated level of loan losses will never end).

Most of the gains are one-time in nature (however of course all of the litigation, R&W, and mortgage losses are perpetual).

rranjan

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Re: BAC Earnings
« Reply #6 on: January 19, 2012, 09:45:41 AM »
Reserve releases are a non-recurring factor (however of course the elevated level of loan losses will never end).

Most of the gains are one-time in nature (however of course all of the litigation, R&W, and mortgage losses are perpetual).

 ;D ;D

txlaw

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Re: BAC Earnings
« Reply #7 on: January 19, 2012, 10:02:05 AM »

PlanMaestro

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Re: BAC Earnings
« Reply #8 on: January 19, 2012, 10:32:31 AM »
And they continue to reduce wholesale funding.  I like that.

http://www.marketwatch.com/story/bank-of-america-announces-commencement-of-cash-tender-offer-for-certain-subordinated-notes-2012-01-19

So many things to like. I liked that net interest income, that has been decreasing the last few Qs, is stabilizing at around $11B per Q.

redskin

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Re: BAC Earnings
« Reply #9 on: January 19, 2012, 01:41:13 PM »
I think it will be difficult for the regulators to deny BAC a dividend increase and share buybacks.  BAC's capital ratios are better than what JPM's were at this time last year.  JPM was given the ok for a divy and $9B share buyback.  BAC could buy back 10% of their shares with a $9B buyback.  I guess the regulators could be reluctant to give BAC the ok due to the litigation issues if they are not satisfied with their legal reserves.

12/2010 JPM
Tier 1 Common 9.80
Tangible Common 5.59

12/2011 BAC
Tier 1 Common 9.86
Tangible Common 6.64