Bank of America’s delinquency rate rises as credit metrics normalize

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Bank of America’s credit card delinquency and net charge-off rates have increased as credit metrics return to normal after being unusually low during the worst of the pandemic. The delinquency rate rose to 0.92% in the first quarter, while the net charge-off rate climbed to 2.13%. This is not unexpected, as many Americans have been struggling financially during the pandemic. Unemployment is still high, and many people are behind on rent or mortgage payments. As a result, it’s not surprising that more people are falling behind on their credit card payments. What is surprising, however, is how low these rates were during the height of the pandemic. Many people assumed that delinquencies and charge-offs would skyrocket as people lost their jobs and struggled to make ends meet.

But that didn’t happen. One reason for this is that banks were very lenient with their customers. They offered payment deferrals and other assistance programs that allowed people to keep up with their payments. Another reason is that people cut back on their spending, which meant they had more money available to pay their credit card bills. Now that the pandemic is winding down, we’re seeing a return to normalcy in terms of credit card delinquencies and charge-offs. This is to be expected, and it’s not cause for alarm.

Share Price

BAC Intrinsic Stock Value – Bank of America’s delinquency rate has risen as credit metrics have begun to normalize. So far, media sentiment around the company has been positive, with many analysts attributing the rise in delinquencies to an increase in lending activity.

On Monday, BANK OF AMERICA ($NYSE:BAC) stock opened at $33.4 and closed at $33.6, a 6.1% increase from the previous day’s close of $31.7. This rise indicates that investors are confident in the company’s ability to weather this latest development.

VI Analysis – BAC Intrinsic Stock Value

Investors often analyze a company’s fundamentals in order to gauge its long-term potential. The “VI Line” app makes this process simple by providing users with easy-to-understand data points. According to the app, the intrinsic value of a BANK OF AMERICA share is around $36.3. However, the stock is currently traded at $33.6, meaning it is undervalued by 7%.

Summary

Bank of America is one of the “big four” banks in the United States, along with JPMorgan Chase, Citigroup, and Wells Fargo. It is headquartered in Charlotte, North Carolina, and has branches throughout the country. Bank of America offers a variety of financial products and services, including checking and savings accounts, credit cards, loans, and investment products. It also has a strong online presence, with an easy-to-use website and mobile app.

Investors may be interested in Bank of America because it is a large and established bank with a wide reach. It also has a history of paying dividends, which can provide income for investors.