“Another quarter of outstanding results”. This is how the report issued by Paul Donofrio, CFO de Bank of America last week compared to the results delivered for the third quarter of 2021.
Bank of America reportó net revenue of $ 7.7 trillion equivalent to a 58% increase compared to the same period of the previous year with 0.85 earnings per share. Net interest expense income increased 12% from $ 20.3 trillion to $ 22.8 trillion.
According to Donofrio, the evolution of the economy, as well as its banking business is recovering solidly against to deposits and loan balances which have been increasing for the second consecutive quarter thus improving net interest income, taking into account that the reference rates for the period covered were kept at minimum levels created to support the crisis stemming from the pandemic. At the same time, it highlights that about $ 12 trillion in capital was returned to shareholders for the third trimester. Finally, Paul Donofrio commented: “Due to the way we run our business, we were able to increase the quarterly dividend by 17% and buy back nearly $ 10 billion in common shares.”.
Obviously, the results presented by Bank of America for the third quarter of the year are good. However, it should be noted that if we compare the results of this quarter Compared to the previous quarter that ended on June 30, net income decreased -16.3% from 9.2 trillion to 7.7 trillion dollars and earnings per share decreased by -17.4%.
Since last October 14, which was the day of the presentation of the results, Bank of America stock is up more than 6%. However, if we analyze the daily frame chart, we find a formation created in a bullish structure since January 2021 which develops a trick, that is, an inverted V, high of the trick and lateralization in correlation to a bullish guideline that works above of the exponential moving averages that reflect the bullish continuation of the share price, but with a very probable retracement in the short term.
This psychological pattern foresees that, at the moment in which the price makes a setback that would be supported by the relative strength index which is at extreme overbought levels to the previous macro support left in June at $ 43.3 levels, and said retreat does it in a similar trick formation to the previous one, I would then confirm the upside impact in pursuit of the first target, which would be the height of the trick that precedes it, that is, at current levels at $ 47.09 per share. What second objective we have the all-time high located at levels of $ 55 per share. Operation that allows a profit of more than 25% in the medium term.