Credit QualityTotal Net Charge-Offs for Bank of America have reached the highest level in a decade, raising concerns about deteriorating credit quality, as evidenced by a substantial 13 basis point increase in the NCO ratio and a 7% rise in nonperforming loans.
Financial PerformanceBank of America has experienced a fees- and cost-driven miss with 4Q23 core EPS of $0.66, failing to meet the expected consensus of $0.71, primarily due to lower-than-anticipated non-interest revenues coupled with rising core operating expenses.
Stock ValuationDespite some positive aspects, analysts have reduced Bank of America's price target following a decline in the price-to-earnings target multiple, suggesting a less optimistic valuation outlook.