Bank of America stock may resume growth after a pullback to the 33 USD support level

Uncertainty surrounding Donald Trump’s tariff policy may trigger another decline in Bank of America Corporation’s shares. However, after testing the 33 USD support level, the price is expected to rebound.

Bank of America Corporation (NYSE: BAC) posted income of 7.4 billion USD in Q1 2025, an 11% increase from the previous year, with EPS of 0.90 USD, exceeding analysts’ expectations due to strong trading results and a 6% revenue growth to 27.4 billion USD. Net interest income reached 14.44 billion USD, which is in line with expectations, while provisions for possible loan losses amounted to 1.50 billion USD, better than the expected 1.58 billion USD. Investors reacted positively to the report, pushing the BAC stock price higher by more than 3%, reflecting confidence in the bank’s operations despite tariff-related concerns. Nevertheless, the risk of another decline in Bank of America Corporation stock remains.

This article will thoroughly examine Bank of America Corporation through a fundamental analysis of Bank of America’s Q3 2024, Q4 2024, and Q1 2025 reports. It also includes the BAC technical analysis and share forecast for 2025 based on the current performance of Bank of America shares.

About Bank of America Corporation

Bank of America Corporation is one of the world’s largest financial institutions, offering a broad range of banking and related services. Amadeo Giannini founded the bank in 1904 in San Francisco, US, under the name Bank of Italy, which was rebranded as Bank of America in 1930. The modern corporation emerged in 1998 following a merger with NationsBank.

Bank of America offers a broad range of services, including retail and corporate banking, investment and insurance products, asset management, and mortgage and lending services. Its headquarters are located in Charlotte, North Carolina, US.

The bank’s IPO occurred in 1957 when its shares began trading on the New York Stock Exchange under the ticker BAC. Bank of America is among the largest banks in the US and worldwide, serving clients in more than 35 countries and managing assets exceeding 2.4 trillion USD.

Bank of America Corporation’s main revenue streams

Bank of America’s key areas of financial interest, which generate revenue, span various business lines, including retail, corporate, and investment services. These are divided into the following categories:

• Net interest income: generated from the difference between interest received on issued loans and interest paid to clients on deposits and other borrowed funds. Bank of America offers a broad range of financial products, including mortgages, commercial and auto loans, and credit cards
• Commission income: revenue from client transaction fees, including charges for account maintenance, payment and transfer processing, and asset management
• Investment banking income: fees for advisory services on mergers and acquisitions, revenue from equity and bond issuance, and earnings from trading financial instruments such as securities, currencies, and derivatives
• Asset management and insurance income: fees for asset management services, insurance premiums, and returns on investments in insurance-related products
• Trading and market operations: profits from transactions involving securities, currencies, and derivatives
• Other income sources: fees for safe deposit box rentals, returns on investments in sustainable development and infrastructure projects, and profits from holdings of government and corporate bonds

These areas diversify the bank’s revenue streams and make them more resilient to economic crises, enabling Bank of America to compete effectively in the global market.

Bank of America Corporation strengths and weaknesses

Bank of America’s strengths include:

• Diversified revenue streams: the bank offers a broad range of financial services, including retail banking, investment services, asset management, corporate banking, and insurance. This diversity strengthens Bank of America’s resilience to market fluctuations across multiple segments and allows it to generate revenue from various sources
• Digital innovation: the bank is actively implementing digital technologies, including mobile apps and the virtual assistant Erica. These innovations enhance service quality, improve operational efficiency, and help attract new clients
• Strong position in investment banking and asset management: the bank’s competitive advantages in investment and private banking, alongside effective asset management, ensure its leadership both in the US and internationally. As a result, it can offer high-quality services to high-net-worth clients and large international corporations worldwide
• Wide network and global presence: the bank has representative offices in more than 35 countries, enabling it to serve clients regardless of location. The bank holds a leading position both in domestic and international markets
• Substantial capital and liquidity reserves: with extensive financial resources and highly liquid assets, the bank is well-equipped to manage risks and maintain stability during economic downturns effectively

Bank of America’s weaknesses include:

• Dependence on interest rates: the bank’s primary revenue stream is derived from the spread between interest earned on loans and interest paid on deposits. This makes it sensitive to changes in financial regulators’ monetary policy and fluctuations in interest rates. During periods of low rates, profitability typically declines
• High operating costs: despite the scale of the corporation and its elevated level of digitalisation, the bank incurs more substantial costs compared to its competitors, including JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC), which negatively affects the overall profitability of the transactions performed
• Weakness in certain retail banking segments: although the bank holds a significant market share in the US, it lags behind competitors such as JPMorgan Chase and Wells Fargo in the retail banking and credit card segments. These banks have a larger client base and more developed service networks

Overall, Bank of America is a strong player in the financial market thanks to its diversification and innovation. However, it faces challenges, including sensitivity to macroeconomic factors and elevated operating expenses.

Bank of America Corporation Q3 2024 report

In October, Bank of America published its report for Q3 2024, which ended on 30 September. The key data from the report is outlined below:

• Revenue: 25.30 billion USD (+1%)
• Net income: 6.90 billion USD (-12%)
• Earnings per share: 0.81 USD (-10%)
• Net Interest income: – 14.0 billion USD (-3%)

Revenue by segment:

• Consumer Banking: 10.40 billion USD (-1%)
• Global Wealth and Investment Management: 5.80 billion USD (+8%)
• Global Banking: 5.83 billion USD (-6%)
• Global Markets: 5.60 billion USD (+14%)

Net income by segment:

• Consumer Banking: 2.70 billion USD (-6%)
• Global Wealth and Investment Management: 1.10 billion USD (+1%)
• Global Banking: 1.90 billion USD (-27%)
• Global Markets: 1.50 billion USD (+25%)

Shareholders received nearly 5.60 billion USD, including 2.00 billion in dividends and 3.50 billion through share buybacks.

Despite a 1% increase in total revenue, the bank’s net income declined by 12%, with profits from banking operations in both the global and US consumer markets falling. However, as in the previous quarter, the investment segment continued to show positive momentum, helping to offset the negative impact of the banking services sector.

Bank of America Corporation Q4 2024 report

Bank of America Corporation released its Q4 2024 statistics on 16 January 2025. The key report highlights, compared to the corresponding period of 2023, are outlined below:

• Revenue: 25.3 billion USD (+15%)
• Net income: 6.7 billion USD (+112%)
• Earnings per share: 0.82 USD (+134%)
• Net interest income: 14.4 billion USD (+3%)

Revenue by segment:

• Consumer Banking: 10.6 billion USD (+3%)
• Global Wealth and Investment Management: 6.0 billion USD (+15%)
• Global Banking: 6.1 billion USD (+3%)
• Global Markets: 4.8 billion USD (+20%)

Net income by segment:

• Consumer Banking: 2.8 billion USD (+2%)
• Global Wealth and Investment Management: 1.2 billion USD (+14%)
• Global Banking: 2.1 billion USD (-13%)
• Global Markets: 941 million USD (+27%)

In the Q4 2025 earnings report, Bank of America’s management expressed optimism about the company’s performance and outlook. It was noted that each business line contributed more to revenue, and there was a noticeable increase in deposits and loans granted, surpassing the industry average. Net interest income was projected to range between 14.5 and 14.6 billion USD in Q1 2025, with steady growth expected to bring it to approximately 15.5-15.7 billion USD by Q4 2025. The second half of 2025 was expected to show stronger growth than the first, ensuring an operational advantage throughout 2025.

Bank of America Corporation Q1 2025 report

On 15 April, Bank of America released its report for Q1 2025, which ended on 31 March. Its key highlights are provided below:

• Revenue: 27.37 billion USD (+6%)
• Net income: 7.40 billion USD (+11%)
• Earnings per share: 0.90 USD (+18%)
• Net interest income: 14.44 billion USD (+3%)

Revenue by segment:

• Consumer Banking: 10.49 billion USD (+3%)
• Global Wealth and Investment Management: 6.02 billion USD (+7%)
• Global Banking: 5.97 billion USD (0%)
• Global Markets: 6.58 billion USD (+12%)

Net income by segment:

• Consumer Banking: 2.53 billion USD (-4%)
• Global Wealth and Investment Management: 1.00 billion USD (0%)
• Global Banking: 1.91 billion USD (-3%)
• Global Markets: 1.94 billion USD (+13%)

Bank of America’s Q1 2025 report showed strong results, exceeding Wall Street expectations and instilling cautious optimism in investors. Income growth was primarily driven by trading revenues, especially in the stock sector, which saw a 17% increase amid the general surge in market activity across leading US banks.

Despite the positive results, Bank of America remains cautious about the economic situation. CEO Brian Moynihan noted potential risks associated with new tariffs and global uncertainty. However, he does not expect a recession in the US economy in 2025, with CFO Alastair Borthwick describing the economy as slowly growing.

In Q1 2025, Bank of America increased provisions for possible loan losses from 1.3 to 1.5 billion USD, indicating the bank’s cautious approach to credit risks amid economic uncertainty.

For income-focused investors, the bank maintained its quarterly dividend at 0.26 USD per share, confirming its commitment to returning capital to its shareholders.

For Q2 2025, Bank of America’s management did not provide a specific forecast. However, the bank expects net interest income to grow by 6-7% in 2025 and reach from 15.5 to 15.7 billion USD by Q4 2025, thereby reiterating the forecast outlined in the commentary to the Q4 2024 report. The primary interest income driver was the consumer services sector.

Overall, Bank of America’s Q1 2025 report confirms strong operating positions and a prudent approach to risk management. Despite persisting macroeconomic uncertainty, the bank’s stable results and focus on shareholders’ interests make its shares attractive to long-term investors.

Expert forecasts for Bank of America Corp stock in 2025

• Barchart: 17 out of 23 analysts rated Bank of America’s stock as a Strong Buy, five as a Moderate Buy, and one as a Hold, with a high target price of 58 USD
• MarketBeat: 18 of 24 specialists assigned a Buy rating to the shares, five gave a Hold recommendation, and one rated them as a Sell. The high target price is 58.00 USD, while the low one is 39 USD
• TipRanks: 13 out of 16 professionals recommended the stock as a Buy and three as a Hold, with a high target price of 59 USD
• Stock Analysis: out of 20 experts, five rated the shares as a Strong Buy, 11 as a Buy, three as a Hold, and one analyst gave a Strong Sell rating to the stock, with a target price of 39 USD. The high price target is 58 USD

Bank of America Corporation stock price forecast for 2025

In February 2025, BAC shares reached a new all-time high of 47.70 USD before falling and losing 30% by 7 April. Although the reports for Q4 2024 and Q1 2025 exceeded expectations, investors were concerned about the unpredictable tariff-related measures of the Trump administration, which caused BAC stock to drop 17% due to tariffs. As the tariff situation remains uncertain, market participants are hesitant about purchasing BAC shares despite management’s optimistic outlook for 2025. Let’s explore the potential price movements in 2025 based on the BAC stock performance.

The optimistic BAC stock forecast suggests that the price could test the 33.00 USD support level, rebound, and rise to the 42.50 USD resistance level. This scenario is supported by Donald Trump’s tariff policy, which puts pressure on the US equity market. However, the situation could stabilise in the near term, potentially sparking investor interest in risky assets and driving demand for stocks, including BAC shares.

The alternative BAC stock forecast anticipates further growth, with the price breaking above the 42.50 USD resistance level. In this case, the share value could climb to 47.50 USD.

Risks of investing in Bank of America Corporation

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Risks of investing in Bank of America Corporation shares include several factors:

• Interest rate sensitivity: Bank of America’s profitability is closely tied to interest rates. Rate hikes boost asset returns but also increase the cost of raised deposits, potentially reducing net interest income. If the Federal Reserve begins to lower rates, as some analysts predict, this could negatively impact interest income and BAC stock valuation
• Economic and political uncertainty: a return to the tariff policy under the Trump administration caused market volatility, temporarily increasing trading revenues but also raising uncertainty. Issues in international relations, particularly with China, may affect global markets and reduce BAC’s revenues from international operations
• Lower investment banking revenues: amid uncertainty, market activity in the mergers and acquisitions sector and IPOs has slowed, leading to lower fee income
• Credit risks: increased loan loss provisions suggest that the bank expects a possible rise in defaults, particularly on commercial loans. The share of overdue loans is increasing, which could result in write-offs and lower fee income

Although the Bank of America shows resilience across several areas, investors should consider the above risks as they may exert pressure on the company’s future financial performance.