Bank of America: What We Learned (hint - it's in the loan book)

Bank of America (BAC) reported their earnings for 2024 this morning and Calcbench has all the data you might want. Net Income increased by $637M in 2024 compared to 2023, an increase of 2.56%. Digging deeper, it is interesting to note that this increase in Net Income is in spite of a substantial increase in their net charge offs. Net charge offs increased from $3.799B in 2023 to $6.031B in 2024, an increase of $2.232B or 58.75%.


An even deeper dive into the numbers allows us to examine the areas in which BAC is experiencing these charge offs. The vast majority seem to stem from the consumer banking segment, specifically, credit cards. Net charge offs on credit cards increased from $2.561B in 2023 to $3.745B in 2024, an increase of $1.184B or 46.23%.


Some other areas also showed some significant increases. For example, Commercial Real Estate related charge offs increased by 252% (from $245M in 2023 to $864M in 2024), U.S. Commercial related charge offs increased by 213% (from $124M in 2023 to $388M in 2024).



Interested in seeing more? Here is the link to the data used for this post: http://sheet.calcbench.com/?publicID=e0f6b09823f06f5e896c978344d55a368a6d4eade4e8f6072bdca5bd8578c0f9.

Want even more information? Reach out to us@calcbench.com


Comments

Post a Comment

Popular posts from this blog

Quick Takes on Free Cash Flow

Image
One of the most important metrics of corporate health these days is free cash flow: the amount of cash a company still has after it pays its for routine operating expenses (opex) and capital expenditures (capex). That remaining cash (abbreviated as FCF) can pay for lofty ambitions such as R&D, acquisitions, dividends, or share buybacks. It also pays down a company’s debt load — and hence FCF is so important these days. As interest rates remain stubbornly high and many companies refinance their debts from the late 2010s at those higher rates, companies will need strong FCF to cover those larger interest payments.  So the crack Calcbench research team wondered: How has free cash flow been performing lately?  To answer that question, we visited our Multi-Company database page and pulled up free cash flow disclosures for more than 1,700 non-financial companies with annual revenue of $100 million or more. Figure 1, below, shows total free cash flow for that group for the last ...
Read more

On Amazon and Server Lifespans

So there we were the other day, skimming the latest from Deep Quarry , a newsletter on financial statement analysis written by accounting aficionado Olga Usvyatsky.  She had been picking apart Amazon.com’s latest quarterly report , and noted that the e-commerce giant had revised the useful life of certain servers and networking equipment downward from six to five years. That change, Usvyatsky noted, will have the practical effect of reducing 2025 operating income by $700 million. Moreover, Amazon ($AMZN) also decided to retire some equipment early; that led to $920 million in accelerated depreciation in Q4 2024 and will reduce 2025 operating income by another $600 million. Wait a minute. The useful life of computer servers, why does that sound familiar…  Because Calcbench wrote about that exact issue in 2021!  Back then, we noted that Google ($GOOG) and Microsoft ($MSFT) had both extended the estimated life of their computer servers from three years to four, which had t...
Read more

Counting Up the Tech Giants and Net Income

Image
All the technology giants will be filing their 2024 annual reports by late January, and they’re all likely to report gobs and gobs of net income; but how many gobs of net income, exactly, compared to the rest of Corporate America?  After all, one popular theory in financial analysis in recent years is that earnings from the tech giants have been pulling away from the rest of large corporations, devouring an ever-larger share of total net income. So using our Multi-Company database page , the crack Calcbench research pulled net income numbers for the S&P 500 for the last seven years, and then mapped out what share of total net income went to eight tech giants compared to all other firms.  The eight firms we classified as tech giants are: Amazon ($AMZN) Apple ($AAPL) Broadcom ($AVGO) Facebook ($META) Google ($GOOG) Microsoft ($MSFT) Netflix ($NFLX) Nvidia ($NVDA) The results are in Figure 1, below. As you can see, the share of net income from the tech giants (in red) has es...
Read more