Shares of financial giant Bank of America (NYSE:BAC) slumped over 2% in the early session today after the company posted a mixed set of fourth-quarter numbers. Revenue declined by 10.5% year-over-year to $21.96 billion, missing expectations by nearly $1.74 billion. EPS of $0.70, on the other hand, fared better than estimates by $0.17.
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During the quarter, net income plummeted to $3.1 billion from $7.1 billion in the year-ago period. Net interest income dropped by 5% to $13.9 billion as higher deposit costs and lower deposit balances offset gains from higher asset yields. Further, noninterest expense increased by 14% to $17.7 billion.
During this period, average deposits rose by 2% to $1.9 trillion. While BAC continued to add new customers, tepid loan expansion resulted in revenues trending lower at its Consumer Banking, Global Wealth & Investment Management, and Global Banking verticals.
What is the Target Price for BAC Stock?
Overall, the Street has a Moderate Buy consensus rating on Bank of America. After a nearly 14% jump in the company’s share price over the past six months, the average BAC price target of $36.61 implies a further 10.4% potential upside.
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