Bank of America Misses Estimates

Bank of America Corporation (NYSE: BAC) faced a challenging fourth quarter, missing earnings estimates by a substantial 34% with reported earnings of $0.35 per share. The company also marginally fell short of revenue expectations, reporting $21.96 billion, a 10% year-over-year decrease from $24.53 billion. Weighing on the top line was the bank’s net interest income (NII) which declined 5% to $13.95 billion, primarily due to higher deposit costs and lower deposit balances, which overshadowed increased asset yields. 

The plunge in net income to $3.1 billion, over 50% lower than the previous year’s $7.1 billion, was exacerbated by a pretax charge of $1.6 billion linked to the transition from the London Interbank Offered Rate (LIBOR). Despite this setback, the bank showcased resilience, offsetting declines with robust trading and investment banking gains. 

Notably, Bank of America navigated these headwinds with a 1% rise in trading revenue to $3.8 billion, driven by a 12% surge in equities revenue. In 2023, the bank successfully navigated the financial markets without incurring trading losses on any single day for the entire year. Additionally, a fourth-quarter uptick in dealmaking propelled investment banking fees to $1.1 billion, a 7% increase.  


Bank of America’s share price recently experienced a notable shift in sentiment, marked by a departure from a descending channel pattern. Initially mired in a downtrend, the stock witnessed a resurgence, breaking through the 100-day moving average and breaching the descending channel.  

The turning point emerged at $24.96 per share, where oversold conditions catalysed an upward shift and established a support level. A significant breakthrough occurred at the $32.85 per share resistance level, substantiated by robust volumes, affirming the strength of the uptrend. However, recent developments indicate a waning of the earlier bullish momentum, as declining upside volumes signalled potential downsides. The retracement back below the $32.85 level led to the creation of a fresh resistance at $34.69 per share. 

Intermediate support materialised at the 23.60% Fibonacci Retracement level, hinting at a potential reversal. A retest of $34.69 per share is probable if this level proves robust. Conversely, a sustained reversal might find support around the 50% level, serving as a downside point of interest.  


Bank of America faced a challenging Q4, missing earnings estimates by 34%. The $1.6 billion charge related to the LIBOR transition exacerbated a 50% plunge in net income. Despite this, Bank of America displayed resilience, leveraging trading and investment banking gains. Technical shifts in its share price underline the delicate interplay of market sentiment amid financial challenges. At present, the 23.60% Fibonacci level serves as a pivotal point of interest. 

Sources: Bank Of America Corporation, Reuters, CNBC, TradingView 

Piece Written By Nkosilathi Dube, Trive Financial Market Analyst 

Disclaimer: Trive South Africa (Pty) Ltd (hereinafter referred to as “Trive SA”), with registration number 2005/011130/07, is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act, 37 of 2002. Trive SA is authorised and regulated by the South African Financial Sector Conduct Authority (FSCA) and holds FSP number 27231. Trive Financial Services Ltd (hereinafter referred to as “Trive MU”) holds an Investment Dealer (Full-Service Dealer, excluding Underwriting) Licence with licence number GB21026295 pursuant to section 29 of the Securities Act 2005, Rule 4 of the Securities Rules 2007, and the Financial Services Rules 2008. Trive MU is authorized and regulated by the Mauritius Financial Services Commission (FSC) and holds Global Business Licence number GB21026295 under Section 72(6) of the Financial Services Act. Trive SA and Trive MU are collectively known and referred to as “Trive Africa”.

Market and economic conditions are subject to sudden change which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. Trive Africa and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered. Please consider the risks involved before you trade or invest. All trades on the Trive Africa platform are subject to the legal terms and conditions to which you agree to be bound. Brand Logos are owned by the respective companies and not by Trive Africa. The use of a company’s brand logo does not represent an endorsement of Trive Africa by the company, nor an endorsement of the company by Trive Africa, nor does it necessarily imply any contractual relationship. Images are for illustrative purposes only and past performance is not necessarily an indication of future performance. No services are offered to stateless persons, persons under the age of 18 years, persons and/or residents of sanctioned countries or any other jurisdiction where the distribution of leveraged instruments is prohibited, and citizens of any state or country where it may be against the law of that country to trade with a South African and/or Mauritius based company and/or where the services are not made available by Trive Africa to hold an account with us. In any case, above all, it is your responsibility to avoid contravening any legislation in the country from where you are at the time.

CFDs and other margin products are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. See our full Risk Disclosure and Terms of Business for further details. Some or all of the services and products are not offered to citizens or residents of certain jurisdictions where international sanctions or local regulatory requirements restrict or prohibit them.