Bank Of America Corp Net Income surged on 13.1% in 2016
13 Jan 2017 • About Bank Of America Corp (
$BAC) • By InTwits
Bank Of America Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has potentially unprofitable business model: ROIC is at 3.4%
- It operates with high leverage: Net Debt/EBITDA is 0.1x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bank Of America Corp ($BAC) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 100,078 | 101,697 | 95,181 | 93,514 | 93,662 | 0.2% |
| Net Income | 4,188 | 11,431 | 4,833 | 15,836 | 17,906 | 13.1% |
Balance Sheet
|
|---|
| Cash | 110,752 | 131,322 | 138,589 | 159,353 | 147,738 | -7.3% |
| Short Term Debt | 452,774 | 373,650 | 337,365 | 269,352 | 257,266 | -4.5% |
| Long Term Debt | 220,388 | 203,598 | 212,415 | 236,764 | 216,823 | -8.4% |
Cash flow
|
|---|
| Capex | | 521 | 1,160 | 0 | 0 | |
Ratios
|
|---|
| Revenue growth | -13.0% | 1.6% | -6.4% | -1.8% | 0.2% | |
| Net Income Margin | 4.2% | 11.2% | 5.1% | 16.9% | 19.1% | 2.2% |
| CAPEX, % of revenue | | 0.5% | 1.2% | 0.0% | 0.0% | 0.0% |
| ROIC | 0.3% | 1.9% | 0.9% | 2.9% | 3.4% | 0.5% |
| ROE | 1.3% | 4.6% | 1.7% | 6.3% | 6.8% | 0.6% |
Revenue and profitability
Bank Of America Corp's Revenue showed almost no change in 2016.
Net Income marign increased on 2.2 pp from 16.9% to 19.1% in 2016.
Return on investment
The company operates at low ROIC (3.44%) and ROE (6.82%). ROIC increased slightly on 0.51 pp from 2.9% to 3.4% in 2016. ROE increased slightly on 0.56 pp from 6.3% to 6.8% in 2016.
Leverage (Debt)
Debt decreased on 6.3% in 2016 while cash decreased on 7.3% in 2016.
Appendix 1: Peers in Banks
Below you can find Bank Of America Corp benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kazkommertsbank JSC ($KKB) | | 6.0% | 16.3% | 41.4% | |
| Sberbank Of Russia ($SBER) | 37.2% | 25.1% | 23.4% | 27.4% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 37.6% | 23.7% | 18.9% | 26.8% | |
| Yapi Ve Kredi Bankasi As ($YKBD) | 14.9% | 4.8% | 19.7% | 25.3% | |
| Mcb Bank Ltd ($MCBS) | 3.0% | -1.7% | 19.4% | 22.4% | |
| |
|---|
| Median (43 companies) | 9.5% | 4.8% | 12.1% | 5.5% | 2.1% |
|---|
| Bank Of America Corp ($BAC) | | 1.6% | -6.4% | -1.8% | 0.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | |
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| |
|---|
| Median (41 companies) | 2.3% | 2.8% | 2.2% | 2.5% | 2.4% |
|---|
| Bank Of America Corp ($BAC) | | 0.5% | 1.2% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | |
| Guaranty Trust Bank ($GRTB) | 19.8% | 18.9% | 17.8% | 16.0% | |
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | |
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | |
| |
|---|
| Median (43 companies) | 6.4% | 5.7% | 4.5% | 3.5% | 3.5% |
|---|
| Bank Of America Corp ($BAC) | 0.3% | 1.9% | 0.9% | 2.9% | 3.4% |
