Erste Group Bank Cuts Earnings Estimates for Bank of America

Bank of America Corporation (NYSE:BAC) – Equities research analysts at Erste Group Bank cut their FY2026 EPS estimates for Bank of America in a note issued to investors on Friday, September 18th. Erste Group Bank analyst H. Engel now anticipates that the financial services provider will post earnings per share of $4.64 for the year, down from their previous estimate of $4.65. The consensus estimate for Bank of America’s current full-year earnings is $4.67 per share.

Bank of America (NYSE:BAC) last released its quarterly earnings data on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share for the quarter, beating the consensus estimate of $1.13 by $0.08. The firm had revenue of $31.56 billion for the quarter, compared to analyst estimates of $30.78 billion. Bank of America had a net margin of 17.56% and a return on equity of 12.20%. The company’s revenue for the quarter was up 19.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.89 EPS.

Several other brokerages have also weighed in on BAC. Truist Financial upped their target price on Bank of America from $64.00 to $65.00 and gave the stock a “buy” rating in a research report on Wednesday, July 15th. JPMorgan Chase & Co. boosted their price target on Bank of America from $62.50 to $68.00 and gave the company an “overweight” rating in a research note on Wednesday, July 29th. Wells Fargo & Company raised their price objective on shares of Bank of America from $67.00 to $69.00 and gave the company an “overweight” rating in a research report on Wednesday, July 15th. Weiss Ratings reissued a “buy (b)” rating on shares of Bank of America in a research report on Tuesday, July 21st. Finally, Oppenheimer lowered shares of Bank of America from an “outperform” rating to a “market perform” rating in a research note on Tuesday, June 30th. Twenty-one analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $64.08.

Bank of America Trading Down 3.0%

NYSE BAC opened at $56.22 on Monday. The company has a current ratio of 0.83, a quick ratio of 0.82 and a debt-to-equity ratio of 1.23. Bank of America has a 1-year low of $46.12 and a 1-year high of $65.22. The firm’s fifty day simple moving average is $61.89 and its 200-day simple moving average is $55.95. The company has a market capitalization of $393.11 billion, a PE ratio of 12.89, a price-to-earnings-growth ratio of 0.93 and a beta of 1.15.

Bank of America Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be given a $0.32 dividend. This is an increase from Bank of America’s previous quarterly dividend of $0.28. This represents a $1.28 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Friday, September 4th. Bank of America’s dividend payout ratio (DPR) is 29.36%.

Hedge Funds Weigh In On Bank of America

A number of institutional investors have recently made changes to their positions in the business. Norges Bank bought a new position in Bank of America in the 4th quarter worth approximately $4,774,210,000. Bank of New York Mellon Corp boosted its position in shares of Bank of America by 5.4% in the fourth quarter. Bank of New York Mellon Corp now owns 57,619,317 shares of the financial services provider’s stock valued at $3,169,062,000 after acquiring an additional 2,929,779 shares during the period. Fisher Asset Management LLC boosted its position in shares of Bank of America by 2.1% in the fourth quarter. Fisher Asset Management LLC now owns 53,783,821 shares of the financial services provider’s stock valued at $2,958,110,000 after acquiring an additional 1,105,833 shares during the period. Deutsche Bank AG grew its stake in shares of Bank of America by 5.9% in the fourth quarter. Deutsche Bank AG now owns 47,172,503 shares of the financial services provider’s stock worth $2,594,488,000 after acquiring an additional 2,611,776 shares during the last quarter. Finally, Legal & General Group Plc increased its position in Bank of America by 3.4% during the fourth quarter. Legal & General Group Plc now owns 45,411,913 shares of the financial services provider’s stock worth $2,497,655,000 after acquiring an additional 1,487,809 shares during the period. 70.71% of the stock is currently owned by institutional investors.

Bank of America News Roundup

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Bank of America is expanding its artificial-intelligence strategy, including investments in AI ventures and efforts to use AI to improve employee productivity, reduce servicing costs, and create infrastructure-related revenue opportunities. These initiatives could support long-term efficiency and earnings growth. Bank of America Bankrolls AI Ventures After Initial Skepticism
• Neutral Sentiment: Bank of America strategists raised their second-half Brent crude forecast to $95 per barrel from $83, while warning that prolonged Middle East supply disruptions could push oil above $150 by spring 2027. The forecast reflects geopolitical and supply risks rather than a change in BAC’s operating outlook. Oil could top $150 a barrel if supplies further tighten
• Negative Sentiment: A sustained oil shock could increase inflation, keep interest rates elevated, pressure household budgets, and raise credit risks—factors that may weigh on bank valuations and loan performance.
• Negative Sentiment: Credit-card delinquencies and net charge-offs rose sequentially in August across major U.S. issuers. Although levels remained below the prior year, the increase signals growing consumer stress and is a modest negative for BAC’s credit-quality outlook. U.S. Card Issuers Delinquencies and NCOs Rise Sequentially in August
• Negative Sentiment: Investors are also reassessing near-term earnings momentum after CEO Brian Moynihan indicated that third-quarter investment-banking fees could decline more than 10% year over year. A recent analyst reduction to BAC’s fiscal-year EPS estimate adds to the pressure.
• Neutral Sentiment: Bank of America said AI-driven shopping will require stronger disclosure and interoperability standards before agentic commerce scales, reflecting potential fraud, dispute, and compliance costs across the payments industry. Bank of America Drops as AI Shopping Demands Guardrails

Bank of America Company Profile

Bank of America Corporation (NYSE:BAC) is a diversified financial services company serving individual consumers, businesses, institutional investors and governments. Its operations include consumer banking, credit and debit cards, mortgages, small-business banking, commercial banking, investment banking, securities trading and investment management.

The company provides consumer and wealth-management services through Bank of America and Merrill, including deposit accounts, lending, brokerage, retirement planning, financial advice and private banking.