Analyst report of Bank of AmericaBank of America is a multi-state cooperation that offers banking and financial services to its customers. Its headquarters is in Charlotte, North California and curren

Analyst report of Bank of AmericaBank of America is a multi-state cooperation that offers banking and financial services to its customers. Its headquarters is in Charlotte, North California and curren
Running head: Analyst report of Bank of America 0 Analyst report of Bank of America Students Name University Analyst report of Bank of America Executive summary Bank of America is a multi-state cooperation that offers banking and financial services to its customers. Its headquarters is in Charlotte, North California and currently it is ranked as the second largest bank in America in terms of assets. Correspondingly in relation to revenue it is ranked the twenty-first company with the largest total revenue. It has 5100 branches worldwide, 16,300 ATMs, and several mobile banking, online and call centers (James & Bessi 24). Its consumer real estate services has seen it expand its customers base by almost 20% through offering them mortgages loans that they can use in renovating and purchasing new homes. According to Scorpio partnership global, a Benchmark for private companies, in 2014 the company assets of $1,866.6 increased by 12.5% due to the irresistible consumer services that it offered to its clients which enabled it maximize its customer’s base. In 2015 Forbes listed the Bank of America as the third biggest in the world. However despite all these achievements, bank of America has also been subject to several law suits and investigations by authorities in relation to mortgages and financial un-disclosures. For instance it is accused of not disclosing a mortgage settlement of $16.65 billion on august 2014 (Morriss 64). Company profile A ticker symbol is an arraignment of characters, normally letters, that represent a specific security that are listed publicly or during stock exchange. It is simply used to identify the company. The ticker symbol used by most companies in United States is normally derived from NYSE or AMEX which contains three letters. However, in rare instances, some contains four letters; such ticker symbols can be said to be Nasdaq. Nasqad that contain five letters are usually said to be foreign. The ticker symbol for Bank of America is BAC which in full means Bank of America Corp. In TV networks colors are normally used while screening this ticker to show how stocks are trading. For instance green is used to indicate that the bank stock is trading higher that the closing of the previous day, red indicate that stock is trading lower than that of the previous day while blue means that the stock has not changed. The mission statement of the Bank of America focuses on its market position as compared to that of its major competitors. This enables its employees to focus particularly on the specific target market which is a strategy mostly used by many retailers who want to expand their market. The mission statement of the bank immediately come in place after it was formed by Ameddeo Giannini on October 1904 and renamed Bank of America in 1924. This mission statement is usually mentioned as one of the major factors that have made the company archive what it has archived today. The mission statement of bank o0f America is “To offer lending and investment products that serve low and moderate income individuals and families”. From the mission statement we can note that the target market for the bank is moderate and low income families who were the majority in America when the bank was founded. When Bank of America was first founded, it was known as the bank of Italy and it had only one branch in San Francisco. However, after it was renamed to the bank of America its main branch was relocated to Charlotte, North Carolina. As time moved on, it continued to expand its branches to several countries in the globe. The Bank of America has continued to take a serious position in engineering growth and success for millions of people, business, households and families. One way they have demonstrated this is by upholding cooperate standards and ethical values. One of the major step towards upholding cooperate standards is seen when the bank was incorporated on July 31st 1998. This meant that the cooperate assets we declared different from that of its owners. This was advantageous since it protected the bank owner’s assets against liabilities, allowed easy transfer of ownership, made the bank to pay lower tax than it used to and also have less restriction on tax for loss carry forward and most importantly enabled the bank raise more capital from sale of stock. Due to increase in deposits and consumer lending, it is becoming clearer that the company is putting most of its problems behind it. This can be credited to the company CEO, Brian Moynihan who has raised the cooperation from grass to grace. When he took over the bank, liabilities were almost threatening to bring down the capital base. This was caused by previous CEOs who made the worst capital allocation decisions such as Merrill Lynch acquisition and countrywide acquisition. When Moynihan took over the position he slowly solved this issue by introducing a low cost culture in the bank instead of cost cutting programs. Even though the bank does not expect to return to the precise level of efficiency, it is evident that they reduced their liabilities by almost 62% percent. The chief financial officer for bank of America is Bruce R Thompson whose responsibility is to assess the financial functions of the company and also oversee company’s treasury, investor relations, and cooperate investments. He is one of cooperate executive management team members who make key decisions. Before he was appointed the CFO, he used to be the chief risk officer for the bank where he made remarkable progress. Stocks are normally divided into two different categories, common and preferred stocks. In a company those who own Common shares are normally considered to be partial owners and are entitled to vote for those who they want to be in the board of directors. One share is normally considered to be one vote. Similarly preferred stock also represent partial ownership, however share holders with preferred stock do not enjoy any of the voting rights that shareholders with common shares enjoy. Also unlike common stock, shareholders with preferred shares are normally paid fixed dividends although this is not a must if the company is not in a financial position to do so. The main benefits of having preferred shares are that one will have a greater claim of the company assets than one with common shares. Also preferred shareholders normally receive their compensation first in case of bankruptcy and in addition are paid their dividends first before common shareholders. Bank of America normally has both Common and preferred shareholders, however preferred is normally being said to be the dominant one (World marketing intelligence, 12). According to the ticker symbol that is normally used to represent Bank of America, it is evident that the stock exchange symbol is derived from NYSE since it contains three characters. If it had four or five characters it would have been NASDAQ. BAC normally sends their dividend estimate every morning to relevant bodies. This normally helps them to know their operation cost and where they should be investing in. According to current statistics, BAC dividend yield is 1.21% which sums up to financial average 5.01%. Their annual payout is $0.20 which they normally pay quarterly of each and every year. This shows that there was no payout growth last year since the previous year’s figure has remained constant. If one carefully assess the history of the dividend paid one will actually realize that it has grown from $0.05 in 2000 to $0.5 in 2015 which is a clear proof that it is growing even if it is gradually.. Industrial profile Market sector is a term that is normally used in finance and economics to describe a part of the economy. It is normally considered to be broader than industry which is just a set of business that are buying and selling same goods and services while they compete with each other. Analyst in stock market normally divides shares of different companies in one market sector so that stocks of companies that usually compete are mentioned alongside each other in stock exchange. In bond market companies are normally divide in terms of ownership, for instance corporate, government, utility and state. In marketing, the term is also used to describe market segments that can be target while launching mass advertising. These segments are normally split using Gics technique. Some of the market sectors in Gics include energy producing company such as coal, financial institutions, heath care institutions, industrials, information technology firms, materials companies, telecommunication services and utilities. In bond market, Bank of America can be described as a corporate while on the other hand in marketing the segment which the bank belongs to is a financial institution. The core financial institution that bank of America normally competes with in the world include bank of China, Wells and Fargo co, JPMorgan Chase and co and China construction corp. Despite all these banks growing rapidly, BAC is still competing with them favorably and has maintained one of the top spot. The Laggards in the sector include Westpac Banking Corp, UBS group and bank of communication ltd that deposits and mortgages are relatively low. Financial market is composed of different financial institutions that carry out variety of functions. For instance some only offer lending services while others accept both deposits and lenders. Those that accept both lending and deposit normally operate under stringent rules from the central bank than those that only offer lending services. The industry to which bank of America belongs to is the Banking and financial services. For a financial institution to belong to this industry it has to offer both lending and deposits services to its customers. They normally act as intermediaries who operate from pool of funds collected from lenders and deposits. 0ver the past two years the bank of America revenue has grown by -0.05 while that of its two major competitors Citigroup Inc (c) and JPMorgan chase has grown with -0.02 and 0.04 respectively (Ltd. Plunkett Research 24). BAC (166.6%) C (66.6%) JPM (-133.3%) From the graph we can derive that revenue of the Bank of America is growing relatively faster than that of its major competitors. This has had advantageous effects on the company’s stock performance. Increase in revenue has seen the bank of America increase its stocks by selling them in stock exchange market. Apart from revenue in Market capitalization BAC has 173.48B, while other companies in the industry such as C, JPM, and WFC have 165.49B, 243.82B, 286.59B respectively. BAC-19.9% C-18.9% JPM-27.9% WFC-32.9% In market capitalization BAC is performing relatively slower than most of the company that are in the industry. This shows that the company net worth is currently lower maybe due to stocks sold in stock exchange over the past two years. However the market capitalization of bank of America is projected to increase in the coming years due to its relatively strong stock growth. Bank of America normally aims to create real and meaningful relationships among individuals, businesses and communities all over the world. Every day they connect with up to 57million customers through experts who aim at making lives better. Apart from customers they have also strived to create an environment where employees all over the world can most favorably work in and archive their goals. Elements that are crucial to the banks global presence and success include how they treat each client as an individual and treating every moment with special care. The second element that has made them maintain their presence is acting responsibly were the company believes that their actions and decision affects millions of people every day and lastly is trust they have in team work were the company believes that it will work best if they work with those who are around them as a team. Current Events/Future Outlook Current events (Bank of America corporation (BAC) news topics.nytimes.com/top/news/business Guide to Wall Street The first quarter of the banks economic well-being this year has been considered to be uneven across the Wall Street since some branches of bank of America posted improvement in revenue while others were struggling as a result of low interest rates that affected their retail deposit and loan holdings (Amber 1). Utah attorney general and bank of America Jerry Kilgore of Virginia the former attorney general who is currently runs a corporate law firm whose client include the bank of America, decided to strike a deal with Utah attorney general which become a focus of criminal investigation. Documents of bank of America The department of justice announced that the bank of America had paid a total of $16.65 billion over allegations that it had made investors buy disputed mortgages security. This has been considered as the largest settlement that any company has made in America (Amber 1). Future outlook(The outlook for bank of America by John caviello. Derived from rocknj.hubpages.com>Explore>personal finance> Banks, s&l’s, credit unions The outlook of the bank of America has drastically improved in 2014 and quarter of 2015 and it is projected to continue increasing all through the years (Caviello 1). According to statistics the bank of America is projected to increase its earning by almost $1.49 per share and 13billion in total earning by the end of 2015. If one carefully analyzes this, 13billion is more than what the bank earned in the year 2011 to 2014 as the American Economy was struggling. Recommendation I suggest that consumers should consider depositing and taking loans from the bank of America This due to the fact that bank of America cannot easily be dissolved since it has a strong revenue growth as compared to other financial and baking institutions in the industries. For instance if we look at the ratios of revenue growth between it and its major competitors in the market sector Citigroup Inc (c) and JPMorgan chase, which is 5:2:-4 we can conclude that the financial institution is quite promising. Also by treating all customers as individual and not as a group will lead to satisfaction which is normally not there case with other financial institutions. References Amber, Sydney. Current events (Bank of America cooperation (BAC) news. New York: new York. 16th April 2015. Print Caviello, John. The outlook for bank of America. Washington: rocknj.hubpages.com. 2015. Print James, Marquis & James,Bessie. Biography of a Bank: The story of bank of America N.T & S.A. New York: Harper & Row. 2006. Print. Ltd. Plunkett Research. Bank of America Corp. (BAC) Profile & Banking & Mortgages Industry Trends Analysis 2011(Digital). New York: Marketresearch.com. 2012. Print. Morriss, Jim. Bank of America of Louisiana. California: B of a. 1983. Print World marketing intelligence. Bank of America Cooperation. Miami; Marketresearch.com. 2010. Print.