Home » Uncategorized » NIM Down at BoA

NIM Down at BoA

Tyler Durden, Zero Hedge, Bank of America Profit Tumbles 19% As NIM Hits Record Low, EPS “Beat” On Surge In Cost-Cutting, here.

The problem observed with other banks, namely the collapse in Net Interest Margin was evident at BofA too, which reported a Net Interest Yield of only 2.03%, the lowest on record. As a result, net interest income fell 12% to $9.21 billion from $10.46 billion a year ago.

BofA, however, is hopeful that long-end rates will rebound, and reported that a +100 bps parallel shift in interest rate yield curve is estimated to benefit NII by $7.5B over the next 12 months. Now if only long-yield were to rebound.

Something else BofA did that was also observed at JPM: increasing total loans – which rose to $900 billion – to offset the decline in margins, coupled with another increase in total deposit.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: