What Has Driven Changes In Bank of America’s Earnings In The Last Five Years?
Bank of America has made substantial changes to its business model since the economic downturn to streamline its operations in the stricter regulatory environment. The bank refocused its operations in the U.S. (slashing its non-U.S. presence – especially in the cards business) and made huge cuts to its mortgage banking unit.
Revenues under Bank of America’s current model are split almost equally between its various operating divisions, with the exception of the mortgage banking unit (which is responsible for a much smaller share). We expect this revenue share to remain roughly the same over the coming years, although mortgage banking revenues could see a sizable improvement as the bank renews its focus on this core business going forward.
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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?
- What Is The Constitution Of Bank of America’s Loan Book In Terms Of Loan Categories?
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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