Bank of America has expanded into several new U.S. markets, with scale across the country positioning it ideally to benefit from accelerating loan growth over the next two years. Moreover, unlike smaller peers, scale allows the bank to increase investment substantially over the next few years without notably jeopardizing returns, driving further market share gains. Warren Buffett owns a stunning 1.1 billion shares of the bank.
For the first quarter of 2023, the bank posted net income of $8.2 billion, over a billion more than in the previous quarter. It was a strong quarter by all metrics.
Shareholders receive a 3.18% dividend. Goldman Sachs has a $35 target price on Bank of America stock. The consensus target is $40.43, and shares closed on Monday at $27.69.
JPMorgan Chase
Led by CEO Jamie Dimon, this mega-bank has been the benefactor of the disruption and recent bank failures, and it is a top pick at Goldman Sachs. JPMorgan Chase & Co. (NYSE: JPM) operates as a financial services company worldwide through the following four segments.
The Consumer & Community Banking segment offers deposit, investment and lending products, cash management and payments and services to consumers and small businesses. It also offers mortgage origination and servicing activities, residential mortgages and home equity loans, and credit cards, auto loans, leases and travel services.
The Corporate & Investment Bank segment provides investment banking products and services, including corporate strategy and structure advisory, and equity and debt markets capital-raising services, as well as loan origination and syndication. It offers payments and cross-border financing, as well as cash and derivative instruments, risk management solutions, prime brokerage and research. This segment also offers securities services, including custody, fund accounting and administration, and securities lending products for asset managers, insurance companies and public and private investment funds.
The Commercial Banking segment provides financial solutions, including lending, payments, investment banking and asset management to small and midsized companies, local governments, nonprofit clients and large corporations. It offers commercial real estate banking services to investors, developers and owners of multifamily, office, retail, industrial and affordable housing properties.
And the Asset & Wealth Management segment offers multi-asset investment management solutions in equities, fixed income, alternatives and money market funds to institutional clients and retail investors. It provides retirement products and services, brokerage, custody, estate planning, lending, deposits and investment management products. The company also provides ATM, online and mobile and telephone banking services.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
