Bank of America is a major bank headquartered in North Carolina. As part of a global network of banking companies and subsidiaries, the company offers a wide range of products, services, and financial services. Bank of America operates in more than 35 countries.

Overall earnings fall short of expectations In the fourth quarter, the company reported adjusted earnings of $0.70 per share, compared to $0.85 per share in the previous year. Analysts had expected $0.64 per share. Total revenue was $21.96 billion, compared to $24.53 billion in the previous year’s quarter. Analysts had expected $23.73 billion.

Despite decline in earnings, CEO satisfied „We delivered solid results for the fourth quarter and full year as all of our businesses achieved strong organic growth, with customer activity and digital engagement at record levels,“ said CEO Brian Moynihan.

Billion-dollar burden In the fourth quarter, Bank of America will also have to bear a burden of approximately $1.6 billion. This is due to high deposits into the US deposit insurance fund from ongoing loan contracts. This amount is expected to flow back into interest income by 2026, according to BofA.

Can the bank’s stock rise to $50? Conclusion: Similar to CEO Brian Moynihan, analysts are also satisfied. 15 out of 28 analysts recommend buying, 12 recommend holding, and only one analyst recommends selling. The average analyst price target is $37, offering little potential for investors. The highest analyst price target is $50. In addition, as an investor, you can benefit from a dividend yield of nearly 3%. And you are in good company – one of the largest investors is Warren Buffett.