Strong Signs of Continued Growth for Bank of America Corporation

Berenberg Bank analysts provided their views on Bank of America Corporation (NYSE:BAC) following the company’s recent Q4 results, which acted as a reminder of its relative strength versus peers. Most significantly, guidance for flat year-over-year costs during 2022 provided welcome relief versus peers’ elevated cost inflation. This efficiency has not, however, come at the expense of growth. Instead, indicators of future growth are robust, and the analysts believe the company’s business mix is particularly well suited to the recovery.

The analysts expect the company’s revenues to grow by 15% during the next three years. While much of this increase relates to the bank’s gearing to expected US interest rate rises, the analysts are also reassured by Bank of America’s recent growth. For instance, the bank’s commercial and consumer loan books both grew at a double-digit annualized rate during Q4/21 and by 14% overall.