NEW YORK (TheStreet) -- Shares of Bank of America (BAC) - Get Report are up by 2.09% to $13.93 on Monday morning, as the bank beat analyst expectations for both earnings and revenue for second quarter of fiscal 2016.

Brennan Hawken, Banking Analyst at UBS, thinks that Bank of America has much more work to do when it comes to its expenses.

"You're at a point where you are hurting revenue but I think that realistically that was unavoidable given the new regulations," Hawken said on CNBC's "Squawk on the Street." "Bank of America is feeling the pinch of the low rate environment."

Bank of America stock is still down 17% year to date and this past quarter represents a notable boost in fixed income trading due to Brexit volatility.

Before reporting its quarterly results, Bank of America released that it will no longer report its legacy asset servicing business as a separate item. Yet Hawken believes that investors' worries about a lack of expense momentum will be countered by a new expense target for 2018.

"It was very important for Bank of America to come out and give that $53 billion target which gave encouragement that it will continue to work through this expense story," Hawken noted.

The bank beat what were "low analyst expectations," as Hawken says "the big banks have had a terrible year."

"I think that the volatility we've seen around interest rates and in the markets has people worried," Hawken added.

Separately, TheStreet Ratings team rates Bank of America as a "buy" with a ratings score of B-. 

This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: BAC

Image placeholder title