What Will Bank of America’s Interest-Based Revenue Look Like In The Next Few Years?
The share of net interest income in Bank of America’s total revenues has increased over the last five years despite a sizable reduction in its net interest margin (NIM) figure. This is because the bank had to substantially shrink the fee-based revenue lines it added as a part of the Countrywide acquisition immediately after the economic downturn.
With the U.S. economy having recovered completely from the effects of the downturn, and with the Fed beginning its rate hike process in December, we expect growth in net interest income to outpace fee-based income over coming years, as captured in the chart below.
- Trailing S&P500 by 26% Since The Start Of 2023, What To Expect From Bank of America Stock?
- Bank of America Stock Has An 83% Upside To Its Pre-Inflation Shock
- Bank of America Stock Is Trading Below Its Intrinsic Value
- Bank of America Stock Is Trading Below Its Intrinsic Value
- Is Bank Of America Stock Undervalued?
- Is Bank of America Stock Fairly Priced?
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 Has Driven Changes In Bank of America’s Earnings In The Last Five Years?
- What Will Bank of America’s Loan Portfolio Look Like In Five Years?
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
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research