Company Reports

With most mortgage settlements behind them, what is BAC’s core profitability picture going forward? BAC

• Reported 4Q14 EPS of $1.19, but $1.33 on an adjusted basis which beat street consensus of $1.31. Adjustments included the firm wide legal expense ($0.26) and other notable items that are a net add-back of ($0.12)

Reported 4Q14 EPS of $0.25, but $0.32 on an adjusted basis which just beat street consensus of $0.31. Negative charges to revenue ($0.07) included the market-related net interest income adjustment, adoption of funding valuation adjustments and net debit valuation adjustments. We estimate that BAC’s interest rate profile added about 3-4 cents per share or comprised about 13% of EPS.

Citi continues to restructure, but how long before we see strong/sustainable core results? C

• Good manager of credit and market risk, improving on enterprise/operational fronts
• Strong business segments, but are franchises worth more together or apart?