NEW YORK, July 20, 2026, 16:08 EDT
Shares of Bank of America NYSE:BAC declined 1.39% to $60.42 on Monday. The main NYSE session was closed, but after-hours trading continued. The bank’s tangible-book multiple stood roughly 10% higher than Wells Fargo NYSE:WFC.
However, Bank of America reported a 17.0% return on tangible common equity, slightly below Wells Fargo’s 17.7%. While the difference in returns is modest, the difference in valuation is more significant.
This puts greater emphasis on recurring net interest income and capital distributions. JPMorgan Chase NYSE:JPM trades at a higher multiple, supported by a stronger adjusted return. Citigroup NYSE:C continues to be valued at the lower end among peers.
| Bank | Monday close | Monday move | Q2 TBV per share | Price/TBV | Q2 ROTCE |
|---|---|---|---|---|---|
| Bank of America | $60.42 | down 1.39% | $29.37 | 2.06x | 17.0% |
| Wells Fargo | $86.34 | down 1.35% | $46.13 | 1.87x | 17.7% |
| JPMorgan Chase | $338.87 | down 0.65% | $113.35 | 2.99x | 23.0% adjusted |
| Citigroup | $128.73 | down 0.49% | $100.89 | 1.28x | 13.0% |
Price/TBV calculations reflect Monday’s closing prices and tangible book values as reported by companies for Q2. TBV and ROTCE are non-GAAP metrics, with possible methodological differences.
JPMorgan’s ROTCE calculation does not include significant items. Both Wells Fargo and Citigroup mark their Q2 results as preliminary.
Bank of America posted the largest drop of the four on Monday, slipping slightly more than Wells Fargo. Losses for JPMorgan and Citigroup were kept under 1%.
Second-quarter figures provided a boost. Net income totaled $9.1 billion. Earnings per share came in at $1.21, beating the analyst forecast of $1.13.
Net interest income increased by 9% to $16.0 billion. CFO Alastair Borthwick predicted full-year expansion will reach the higher end of the 6% to 8% range.
Borthwick stated that “Our strategy is working.” He pointed to increases in loans and deposits, fixed-rate repricing, and balance-sheet optimization. Reuters
Earnings became more sensitive to cycles due to trading. Sales and trading revenue surged 33% to an all-time high of $7.1 billion. Equities increased by 70%.
Capital returns showed more stability. The bank distributed $8.0 billion to shareholders, with $6.0 billion allocated to share repurchases. Tangible book value per share increased by 7% to reach $29.37.
Shares rose 2.7% during the week ending July 17. The drop on Monday wiped out 53% of those gains in dollar terms. The stock is still trading 1.5% higher compared to the July 13 close.
Investors face a pair of consumer updates this week. U.S. jobless claims are expected on Thursday. American Express NYSE:AXP posts earnings Friday ahead of the market open.
June new-home sales are due at 10 a.m. EDT on Friday, providing additional insight into consumer demand and borrowing interest.
Risks: CEO Brian Moynihan identified inflation and tighter policy as “key risks.” Lower market activity may impact trading revenue. If consumer strength declines, credit costs could increase. Reuters
The focus has shifted to execution. Investors are set to monitor NII growth and the rate of buybacks, rather than just another strong quarter for trading.
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