Bank of America: Q1 Results Dispel Fears on Deposits & Bond Portfolio
Company Update (BAC US) (Buy)
Highlights
BAC delivered solid Q1 2023 results with a ROTCE of 17.4%
Deposits were stable even before March’s “flight to quality”
There were further reassuring details on BAC’s bond portfolio
P/TBV is 1.34x, P/E is <10x and Dividend Yield is 2.9%
We expect a total return of 93% (29% p.a.) by end of 2025. Buy
Introduction
We review our Buy rating on Bank of America (“BAC”) after Q1 2023 results on Tuesday (April 18).
We have followed bank stocks for over a decade and have been publishing our research on BAC publicly since 2019. Our most recent article, reassuring investors during the panic around “unrealized losses” in mid-March, was the top trending article on Seeking Alpha for 2 days and received nearly 150,000 views:
Our Most Recent BAC Article Trending
Source: Seeking Alpha (15-Mar-23).
BAC stock closed up 0.6% on Tuesday and has now rebounded 16% since its trough a few weeks ago, but remains 38% below the ~$49 level it reached in early January 2022.
We believe Q1 2023 results should dispel mo…