Bank of America shares close higher on Monday, quarterly profit tops expectations as loan growth, higher interest rates support

Bank of America Corps first-quarter profit, reported on Monday, outstripped market expectations, as higher interest rates as well as loan and deposit growth supported overall performance.

Bank of America shares closed higher for the fourth time in the past six trading sessions on Monday. The stock went up 0.44% ($0.13) to $29.93, after touching an intraday low at $29.47, or a price level not seen since April 6th ($29.37).

In the week ended on April 15th the shares of the financial holding company added 0.57% to their market value compared to a week ago, which marked the second gain out of five weeks.

The stock has pared its loss to 0.20% so far during the current month, following a 6.57% slump in March. The latter has been the worst monthly performance since June 2016.

For the entire past year, Bank of America shares rose 33.57% following another 31.31% surge in 2016.

Revenue at Bank of Americas consumer banking business went up 9% year-on-year during the past quarter, as rising interest rates also pushed the banks charge on loans higher. The groups net interest income was reported to have surged 5% year-on-year during the first quarter, which led to a 4% increase in total revenue to $23.28 billion. In comparison, analysts on average had expected $23.06 billion in revenue.

At the same time, Bank of Americas loans and leases increased by 3% in Q1 from a year ago, while its total deposits – by 4.4%.

The banks non-interest expenditures shrank 1% in Q1 from a year earlier, while its income tax expenditures dropped 26% during the period.

Bank of Americas adjusted revenue from equities trading soared 38% in Q1. On the other hand, revenue from fixed income trading shrank 13% during the quarter.

According to Chief Financial Officer Paul Donofrio, the groups weaker results from fixed income, currency and commodities (FICC) trading resulted from a drop in bond issuance from companies.

Meanwhile, Bank of Americas net income attributable to shareholders was reported to have surged to $6.49 billion during the first quarter from $4.84 billion in the year-ago three-month period.

The group earned $0.62 per share in Q1, which topped the median analyst estimate pointing to earnings of $0.59 per share.

According to CNN Money, the 30 analysts, offering 12-month forecasts regarding Bank of America’s stock price, have a median target of $35.00, with a high estimate of $37.00 and a low estimate of $27.00. The median estimate is a 16.94% surge compared to the closing price of $29.93 on April 16th.

The same media also reported that 17 out of 32 surveyed investment analysts had rated Bank of America’s stock as “Buy”, while 9 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Bank of America stock are presented as follows:

R1 – $30.01
R2 – $30.10
R3 (Range Resistance – Sell) – $30.18
R4 (Long Breakout) – $30.43
R5 (Breakout Target 1) – $30.71
R6 (Breakout Target 2) – $30.84

S1 – $29.85
S2 – $29.77
S3 (Range Support – Buy) – $29.68
S4 (Short Breakout) – $29.44
S5 (Breakout Target 1) – $29.15
S6 (Breakout Target 2) – $29.02

By using the traditional method of calculation, the weekly levels of importance for Bank of America Corporation (BAC) are presented as follows:

Central Pivot Point – $30.18
R1 – $30.79
R2 – $31.79
R3 – $32.40
R4 – $33.02

S1 – $29.18
S2 – $28.57
S3 – $27.57
S4 – $26.58