Bank of America: Financial Analysis

Bank of America

Damian Papish

Management 768 – Financial and Capital Issues

Abstract

In this report we are being asked to analyze a public company, in which case I decided to choose Bank of America. Throughout the course of this report, I will attempt to cover key financial issues relating to liquidity, leverage and the sustainable growth of the company. In my analysis, I will use various charts and peer ratios to compare and contrast the position of Bank of America, when compared to those of their peers and the banking Industry as a whole. The report will start with a brief overview as to the history of the company, and end with my final thoughts on their current performance and where I think they are heading (which hopefully will tie into the sustainable growth of the company).

Bank of America: Financial Analysis of a public company

Headquartered in Charlotte, NC, Bank of America (B of A) has roughly more than 1,710 financial institutions, approximately 5,187 branches, which are spread throughout more than 25 of the United States. Bank of America is one of the largest financial institutions in the world, servicing, but not limited to, individuals (banking, asset management, investing, and other risk management services), as well as offering many same and different products and services to small businesses up to large corporations. B of A is also one of the world leaders in Wealth Management as well as corporate and investment banking. B of A is listed on the New York Stock Exchange (NYSE) with a ticker of BAC and serves clients in more than 40 different countries.

Bank History

The Bank of America story dates back to 1784, when they were know by the name of their predecessor, Massachusetts Bank. This was before the signing of the United States Constitution, with John Hancock signing the Bank charter, making it the second bank to receive a charter out of a total three commercial banks being in existence at the time. After several Mergers and...