What Will Bank of America’s Loan Portfolio Look Like In Five Years?
Bank of America’s restructuring efforts since the economic downturn have resulted in an overall reduction in its loan portfolio, with the bank seeing year-on-year growth in only one category – commercial loans – between 2010 and 2015.
With the U.S. economy having largely recovered from the lows seen after the downturn, and with Bank of America’s operating divisions reporting steady growth, we expect the loan portfolio to witness all-around growth going forward – crossing the $1 trillion mark by the end of 2020. We forecast the slowest growth in residential mortgages, as the bank is expected to run off its legacy mortgage portfolio of roughly $26 billion over the next few years.
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The table below summarizes the share of various loan categories in Bank of America’s portfolio historically, and also our forecast for 2020. The shift from residential mortgages to commercial loans is evident here.
See the links below for more information and analysis about Bank of America:
- What Proportion of Bank of America’s Revenues and Profits Come From Its Various Divisions?
- How Much Are Bank of America’s Operating Divisions Worth Individually?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment/ ask questions on the comment section
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to the full Trefis analysis for Bank of America
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