Erste Group Bank Comments on Bank of America FY2026 Earnings

Key Points

• Erste Group Bank slightly lowered its FY2026 EPS estimate for Bank of America to $4.64 from $4.65, below the $4.67 analyst consensus.
• Bank of America’s latest quarterly results exceeded expectations, with EPS of $1.21 versus $1.13 expected and revenue up 19.6% year over year to $31.56 billion.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and a $64.08 price target; the bank also raised its quarterly dividend to $0.32 per share from $0.28.

Bank of America Corporation (NYSE:BAC - Free Report) - Investment analysts at Erste Group Bank dropped their FY2026 earnings estimates for Bank of America in a report released on Friday, September 18th. Erste Group Bank analyst H. Engel now expects that the financial services provider will post earnings per share of $4.64 for the year, down from their previous forecast of $4.65. The consensus estimate for Bank of America's current full-year earnings is $4.67 per share.

A number of other research analysts also recently weighed in on the company. Keefe, Bruyette & Woods lifted their price target on Bank of America from $67.00 to $70.00 and gave the company an "outperform" rating in a report on Wednesday, July 15th. Citigroup raised their price objective on Bank of America from $62.00 to $66.00 and gave the stock a "buy" rating in a research report on Tuesday, June 23rd. Morgan Stanley reiterated an "overweight" rating on shares of Bank of America in a report on Tuesday, September 15th. Royal Bank Of Canada increased their price target on shares of Bank of America from $59.00 to $65.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 15th. Finally, Wells Fargo & Company upped their price objective on shares of Bank of America from $67.00 to $69.00 and gave the company an "overweight" rating in a research note on Wednesday, July 15th. Twenty-one investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, Bank of America has a consensus rating of "Moderate Buy" and a consensus price target of $64.08.

Bank of America Price Performance

Shares of NYSE:BAC opened at $57.70 on Monday. The company's fifty day moving average is $62.00 and its two-hundred day moving average is $55.85. The company has a market cap of $403.51 billion, a P/E ratio of 13.23, a price-to-earnings-growth ratio of 0.92 and a beta of 1.15. Bank of America has a 12-month low of $46.12 and a 12-month high of $65.22. The company has a quick ratio of 0.82, a current ratio of 0.83 and a debt-to-equity ratio of 1.23.

Bank of America (NYSE:BAC - Get Free Report) last issued its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $1.21 EPS for the quarter, beating the consensus estimate of $1.13 by $0.08. Bank of America had a net margin of 17.56% and a return on equity of 12.20%. The business had revenue of $31.56 billion during the quarter, compared to the consensus estimate of $30.78 billion. During the same quarter in the prior year, the firm earned $0.89 EPS. The firm's quarterly revenue was up 19.6% on a year-over-year basis.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Bamco Inc. NY boosted its position in Bank of America by 45.4% during the second quarter. Bamco Inc. NY now owns 40,994 shares of the financial services provider's stock valued at $2,336,000 after purchasing an additional 12,794 shares during the last quarter. E Fund Management Co. Ltd. bought a new position in Bank of America in the second quarter valued at approximately $4,089,000. Bernicke Wealth Management Ltd. acquired a new position in shares of Bank of America during the 2nd quarter worth approximately $2,132,000. Legal & General Group Plc increased its position in shares of Bank of America by 3.4% during the 4th quarter. Legal & General Group Plc now owns 45,411,913 shares of the financial services provider's stock worth $2,497,655,000 after purchasing an additional 1,487,809 shares during the last quarter. Finally, Mondrian Investment Partners LTD raised its stake in shares of Bank of America by 34.3% during the 4th quarter. Mondrian Investment Partners LTD now owns 2,175,401 shares of the financial services provider's stock worth $119,647,000 after purchasing an additional 555,063 shares in the last quarter. 70.71% of the stock is owned by institutional investors.

Bank of America Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 2.2%. The ex-dividend date is Friday, September 4th. This is a positive change from Bank of America's previous quarterly dividend of $0.28. Bank of America's dividend payout ratio is currently 29.36%.

Key Stories Impacting Bank of America

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Goldman Sachs initiated or reiterated a Buy rating on Bank of America, offering a favorable signal from Wall Street analysts. Bank of America Receives a Buy from Goldman Sachs
• Positive Sentiment: The Federal Reserve’s rate increase could support Bank of America’s net interest income by allowing the bank to earn more on loans and other assets, although the benefit may be partly offset by higher deposit costs. What the Fed Rate Hike Means for Banks
• Positive Sentiment: Bank of America declared regular cash dividends on multiple preferred-stock series, reinforcing its ongoing ability to make capital distributions. The announcement does not change the common-stock dividend. Bank of America Declares Preferred Stock Dividends
• Neutral Sentiment: CashPro App usage by European companies exceeded €100 billion in approved payments during the first seven months of the year, highlighting continued adoption of Bank of America’s treasury-management technology, but the near-term earnings impact is unclear. European Companies Shift Treasury to Mobile With Bank of America CashPro
• Neutral Sentiment: Bank of America hired Goldman Sachs banker Srijith Nair to lead financial-institutions investment banking in Asia outside China, a move that could strengthen the franchise over time but provides no immediate earnings catalyst. BofA Hires Goldman Sachs Banker
• Negative Sentiment: CEO Brian Moynihan indicated that revenue in a key investment-banking area is slowing. The warning overshadowed strong loan growth and net interest income, raising concerns about fee revenue and near-term operating momentum. Bank of America Stock Slides After Investment Banking Fees Decline
• Negative Sentiment: The market reaction reflects concern that weaker investment-banking fees may persist, despite analysts maintaining bullish targets and Bank of America’s latest earnings beat. Why Bank of America Stock Sold Off

Bank of America Company Profile

Bank of America Corporation NYSE: BAC is a diversified financial services company serving individual consumers, businesses, institutional investors and governments. Its operations include consumer banking, credit and debit cards, mortgages, small-business banking, commercial banking, investment banking, securities trading and investment management.

The company provides consumer and wealth-management services through Bank of America and Merrill, including deposit accounts, lending, brokerage, retirement planning, financial advice and private banking.

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