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How to Measure Bank of America’s Profitability

December 21, 2016

Via: Yahoo

How should an investor who’s interested in learning about Bank of America (NYSE:BAC) measure its profitability?

This seems like a straightforward question that should have a straightforward answer. However, because of the idiosyncratic way banks report certain financial figures, it’s more convoluted than one might assume.

Defining profitability

On one level, profitability refers simply to the amount of money a bank earns. In the most recent quarter, Bank of America made $4.5 billion after deducting dividend payments on preferred stock.

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