Bank of America Results: The New Life of Brian


Bank of America shines amidst the reopening of the U.S. economy. Although not America’s most profitable bank, it draws its dynamism from its clients and not just from mergers and acquisitions.

“We fought the competition and we won,”* Bank of America Corp. boss Brian Moynihan triumphantly declared on the announcement of its impressive quarterly earnings. With shares up 3.2%, its better-than-predicted results cannot be explained merely by the lifting of the pandemic lockdown.

The strength of Bank of America’s interest income, meaning interest paid to it minus interest paid to clients, has reached 8% compared to 5% at best for JP Morgan Chase & Co.’s and Wells Fargo & Company’s figures online, with Citigroup Inc.’s a little below them.

Bank of America has succeeded in raising its revenues in tandem with the reopening of the U.S. economy while taking its slice of the pie from mergers and acquisitions.

This economic upswing is not only an encouraging signal for Wall Street, but also favors Bank of America’s strategy as the best one for Uncle Sam’s four largest banking networks since the end of 2019.

A Way To Go

The CEO of Charlotte’s bank has spent the past few years stitching up the tears from the last great financial crisis, complicated by the resale of Merrill Lynch.

Yet Bank of America has a way to go in matching the profitability of the leading firm, JP Morgan Chase, which provided Moynihan’s counterpart there, Jamie Dimon, a much better romance with the stock market, with shares earning 1.9 times their value versus 1.5 times for Bank of America’s.

*Editor’s note: This quotation, accurately translated, could not be verified.

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About Hal Swindall 73 Articles
A California native, Hal Swindall earned an MA in English from Claremont Graduate University and a PhD in comparative literature from UC Riverside, majoring in English and minoring in French and Italian. Since then, he has wandered East Asia as an itinerant English professor, mainly teaching writing and literature. Presently, he works as an English teacher trainer in the Faculty of Education at the University of Malaya in Kuala Lumpur, Malaysia. Hal's interests besides translating, editing and literature include classical music and badminton, as well as East Asian temples.

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