What Will Bank of America’s Interest-Based Revenue Look Like In The Next Few Years?

-0.23%
Downside
36.01
Market
35.93
Trefis
BAC: Bank of America logo
BAC
Bank of America

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.

BAC_QA_NIMHist
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.

BAC_QA_NIM2020

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See the links below for more information and analysis about Bank of America:

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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