Bank Of America Corp reports 228% Net Income growth
19 Jan 2016 • About Bank Of America Corp (
$BAC) • By InTwits
Bank Of America Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has potentially unprofitable business model: ROIC is at 2.9%
- It operates with high leverage: Net Debt/EBITDA is 40.1x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bank Of America Corp ($BAC) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 115,074 | 100,078 | 101,697 | 95,181 | 93,514 | -1.8% |
| Net Income | 1,446 | 4,188 | 11,431 | 4,833 | 15,836 | 227.7% |
Balance Sheet
|
|---|
| Cash | 120,102 | 110,752 | 131,322 | 138,589 | 159,353 | 15.0% |
| Short Term Debt | 408,485 | 452,774 | 373,650 | 337,365 | 269,352 | -20.2% |
| Long Term Debt | 274,850 | 220,388 | 203,598 | 212,415 | 236,764 | 11.5% |
Cash flow
|
|---|
| Capex | 1,307 | | 521 | 1,160 | 0 | -100.0% |
Ratios
|
|---|
| Revenue growth | -14.2% | -13.0% | 1.6% | -6.4% | -1.8% | |
| Net Income Margin | 1.3% | 4.2% | 11.2% | 5.1% | 16.9% | 11.9% |
| CAPEX, % of revenue | 1.1% | | 0.5% | 1.2% | 0.0% | -1.2% |
| ROIC | -0.0% | 0.3% | 1.9% | 0.9% | 2.9% | 2.0% |
| ROE | 0.0% | 1.3% | 4.6% | 1.7% | 6.3% | 4.6% |
Revenue and profitability
Bank Of America Corp's Revenue decreased slightly on 1.8% in 2015.
Net Income marign jumped on 11.9 pp from 5.1% to 16.9% in 2015.
Return on investment
The company operates at low ROIC (2.92%) and ROE (6.27%). ROIC increased on 2.0 pp from 0.88% to 2.9% in 2015. ROE increased on 4.6 pp from 1.7% to 6.3% in 2015.
Leverage (Debt)
Debt decreased on 7.9% in 2015 while cash surged on 15.0% in 2015.
Appendix 1: Peers in Banks
Below we provide Bank Of America Corp benchmarking against other companies in Banks industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Banque Intl Arabe De Tunisie ($BIND) | 9.5% | -20.2% | 17.3% | 50.2% | |
| European Islamic Investment Bank ($EIIB) | -41.8% | 121.2% | 12.6% | 42.3% | |
| VTB Bank JSC ($VTBR) | 23.8% | 48.1% | 16.5% | 29.8% | |
| Bank Audi S.A.L. ($BQAD) | 7.1% | 9.1% | 11.7% | 23.9% | |
| Sberbank Of Russia ($SBER) | 6.7% | 37.2% | 25.1% | 23.4% | |
| |
|---|
| Median (42 companies) | 10.0% | 11.0% | 5.4% | 11.8% | 3.3% |
|---|
| Bank Of America Corp ($BAC) | | -13.0% | 1.6% | -6.4% | -1.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lloyds Banking Group ($LLPC) | | 8.0% | 8.9% | 13.1% | 13.6% |
| Banco Santander Sa ($BNC) | 2.2% | 2.7% | 2.6% | 8.9% | |
| Finansbank ($FBKD) | 2.0% | 1.9% | 2.8% | 8.5% | |
| Guaranty Trust Bank ($GRTB) | 10.0% | 6.7% | 6.1% | 6.8% | |
| Diamond Bank ($DBPA) | | 8.2% | 7.9% | 6.0% | 6.7% |
| |
|---|
| Median (39 companies) | 2.4% | 2.4% | 2.7% | 2.1% | 2.3% |
|---|
| Bank Of America Corp ($BAC) | 1.1% | | 0.5% | 1.2% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 16.3% | 21.7% | 26.9% | 30.1% | |
| Guaranty Trust Bank ($GRTB) | 14.2% | 19.8% | 18.9% | 17.8% | |
| Mcb Bank Ltd ($MCBS) | 18.7% | 15.0% | 14.4% | 15.8% | |
| Zenith Bank ($ZENB) | 13.8% | 19.0% | 17.6% | 15.0% | |
| United Bank Ltd ($UBLS) | 12.6% | 11.7% | 11.8% | 13.8% | |
| |
|---|
| Median (42 companies) | 7.1% | 6.2% | 5.5% | 4.4% | 2.4% |
|---|
| Bank Of America Corp ($BAC) | -0.0% | 0.3% | 1.9% | 0.9% | 2.9% |
