This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bank of America to Keep On Rising in 2013: Analyst

The analyst expects Bank of America's net interest margin to expand by 3 basis points during the fourth quarter, to 2.36%, which is, by far, his lowest estimated NIM among the nine large-cap banks. For 2013, Juneja expects Bank of America's margin to increase by one basis point, which may not seem like much, however, he expects a significant margin squeeze for most of the other large-cap banks, including a 23% decline for Wells Fargo, a 21% decline for PNC and a 20% decline for BB&T.

Most analysts expect the margin decline to be offset during 2013 by continued strong fee income from the mortgage refinancing wave, and a continued decline in credit costs as the economy continues to recover.

More Dividends Coming

Following the next round of Federal Reserve stress tests, Juneja expects all nine of the large-cap banks covered in the report to be approved to raise their dividends on common shares, with Bank of America going from the current nominal quarterly dividend of a penny a share to five cents a share in the second quarter of 2013, with the dividend increasing to even cents a share in the second quarter 2014.

Two other large-caps covered in the JPMorgan Report are currently paying quarterly dividends of just a penny a share. Juneja expects Citigroup to raise its quarterly payout to 25 cents a share in the second quarter of 2013, with the dividend increasing to 43 cents a share in 2013; and for Regions Financial (RF) to increase its dividend to a nickel in the second quarter of 2013, going to six cents in 2013.


-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.86 0.47%
C $46.73 0.00%
STI $42.07 0.00%
USB $43.13 0.00%
WFC $50.41 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs