Bank of America (BAC) and Citigroup (C) both reported exceptional earnings reports today, which exceeded Wall Street’s analyst expectations on first-quarter profits, revenue, and earnings per share! In the earnings reports, both companies also announced that they have lowered their loan loss reserves – a signal that the economic outlook is continuing to improve, as our firm has anticipated!
In addition to the huge beat, BAC also authorized a $25 billion stock repurchase program. We anticipate that this program will increase the share price of the company! We also anticipate that both companies will likely increase their dividends by a significant margin at some point over the next two quarters.