Bank of America Corporation (NYSE: BAC) will rise higher against the background of profit growth

Bank of America Corporation stock will rise higher

In brief: Bank of America Corp. (NYSE: BAC) assets will start to grow tomorrow - analysts say. China Construction Bank will become the main mascot for Bank of America.

Bank of America Corporation (NYSE: BAC) completed the bidding at around 13.63 points, losing -2.01%. At the same time, the bullish trend may come back very quickly. CEO of BofA Brian Moynihan said the bank intends to reduce the cost of a unit serving credit cards, during the third quarter, as the restrictions imposed by the new rules regulating financial markets at the commission income may negatively affect the company’s annual revenues.

It is expected that the cost of this unit will be reduced by $ 10 billion by October, when completed third quarter. “As a result, they (BofA – ed.) May substantially increase its capital”, – said independent analyst Nancy Bush. The share of China Construction Bank “seriously increase the market value of tangible assets, and it happens at a time when Wall Street considers this figure as an important landmark.” Revaluation of owned BofA shares in China Construction Bank will be reflected already in the October report for the third quarter, confirmed an official bank representative Jerry Dubrowski. BofA purchased the shares of the Chinese bank in June 2005, and its share in China Construction Bank in certain moments was 17%. Bank of America Corp., Founded in 1904, is a diversified financial institution, serving customers in more than 150 countries. With the acquisition in 2008, Merrill Lynch, BofA was the world’s largest bank, dealing with asset management. BofA is in the so-called “big four” banks in the U.S., along with the main competitors – Citigroup, JP Morgan Chase and Wells Fargo. Net profit BofA after the second quarter of 2010 decreased by 3% compared with the same period last year and amounted to 3,12 billion dollars.

Igor Tringlers
2010-08-11 00:30, Economics.

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