THE BANKPEDIA

  It is important for an investor to analyze the financial performance of an organization as it provides a snapshot of firm’s health and provides insight into future. Financial performance can be assessed with the help of key performance indicators such as Gross profit margin, net profit margin, etc. Results of such analysis can help the investor to take decision whether or not to invest in the firm. Banks have unique characteristics from other firms. Hence, it is more practical to assess the financial performance of banks based on below mentioned indicators  (Blokhin, 2023) .  Efficiency ratio Price to earnings ratio Loan to deposit ratio     Let us analyze the financial performance of BOA from 2019 to 2022 based on the above indicators.       Efficiency Ratio Expense and Income figures  ( Annual reports & proxy statements )   2019 (In million) 2020 (In million) 2021 (In million) 2022 (In million) Non-Interest ex

  ABOUT Bank of America which is serving more than 10% of all American bank deposits is headquartered in Charlotte, North Carolina  ( Bank of America 2023) . It was formed by Nation’s bank acquisition of Bank of America in 1998. Bank of America holds a market share of 17.8% in United States as of June 2022 and is serving approximately 67 million consumer and small business clients. MAJOR DIVISIONS OF THE BANK HOW DOES BANK OF AMERICA MANAGE THEIR RISKS Risk is inevitable for any organization. Like any organization, banks are also susceptible to various risks and firm can never grow without taking risks. Some of the risks which Bank of America face are  ( Annual reports & proxy statements ) : : RISK MANAGEMENT Liquidity Risk   The Asset and Liability Committee of the bank is in charge of framing the bank’s liquidity strategy ( Annual reports & proxy statements ). The corporate treasury team is responsible for devising and administering banks funding strategies and