Bank Of America Executive Summary

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Company Profile:

Bank of America is multinational financial services corporation that serves millions of people across the globe. It is the second largest banking institution in the United States by assets and continues to dominate the commercial banking industry with innovation in technology and cost management. Bank of America has been able to place itself strategically to compete and maintain its market share through a series of mergers and acquisitions. The company’s current position is positive in the constantly competitive banking industry.

Brief Description:

Bank of America Corporation known as today is the result of a 1998 merger between NationsBank Corporation and BankAmerica Corporation. After the merger, the holding company took the name of the more known Bank America corporation. Even though NationsBank acquired BankAmerica Corp in the essential deal. The company has over 211,000 employees worldwide including multiple subsidiaries (source). It has its
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Morningstar, a database of financial analysis of publically traded companies, gave the stock a fair value of $20. Fair value is calculated by comparison of investments of similar risk and return. This is due to the increased 3rd quarter earnings report that exceeded the analyst expectations.

Even though the stock price is not as high as the company’s competitors, it has been fairly stable over the past two years. The high was $18.55 in July 2015 and lowest was $11.15 in February 2016 due to energy losses. This is mostly the result of the efforts of CEO, Brian T. Moynihan, who is trying to re-establish the bank as one of the strongest banks in the nation.

Furthermore, there is increased trust in the bank’s capital allocation that was a problem in the past. It is also settling the lawsuits from the mortgage crisis of 2009 and consistently decreasing costs of operating.

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