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Bank of America: Q1 Results Dispel Fears on Deposits & Bond Portfolio
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Bank of America: Q1 Results Dispel Fears on Deposits & Bond Portfolio

Company Update (BAC US) (Buy)

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Librarian Capital
Apr 19, 2023
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Bank of America: Q1 Results Dispel Fears on Deposits & Bond Portfolio
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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…

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