Bank of America Earnings Review
I summed up some of the highlights and lowlights from BAC's recent quarterly report. The stat that caught my eye was reported earnings would have been negative without the loss reserve drawdown.
Improving credit quality does justify taking down reserves and the reserves still exceed the non-performing loans. But, the bank can't keep pulling down reserves indefinitely.
Bottom line - BAC is improving and the valuations look attractive. But, I think the other big banks are more attractive buys.
What's your opinion? Is BAC headed up or will it continue to hack around?
Disclosure: No position in BAC. Long WFC and C, which are mentioned in the article.