This Stock Is a Safe Buy Right Now
Bank of America (NYSE: BAC) recently announced earnings results for the fourth quarter and full year of 2021 that beat estimates. But beyond the results, management's outlook and guidance for this year confirmed to me that the nation's second-largest bank by assets is a safe pick right now in what has been and remains an extraordinarily difficult market in the past few months. Here's why.
After nearly two years in a low-rate environment with very little loan demand, it looks like loan growth has finally returned and may accelerate this year, despite the projected interest rate hikes from the Federal Reserve.
Bank of America did fine in 2021, but that's largely because of the strong performance in its corporate and investment banking division, along with reserve capital releases after anticipated loan losses never really materialized. Average loan balances grew nearly 3% in the fourth quarter of 2021, driven by stronger commercial loan growth and decent consumer loan growth as well.
Source Fool.com
