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  • Bank of America Corp. (NYSE:BAC) Expecting Slower Growth in Deposits and Consumer Loans

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    Thursday Feb 10, 2011 at 03:10 pm EST
     
    Bank of America Corp. (NYSE:BAC) Expecting Slower Growth in Deposits and Consumer Loans
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    Improving business activity has helped banks reduce provisions for credit losses and improve margins on both credit cards and mortgages. Still, the consumer banking segment at Bank of America Corp. (NYSE:BAC) has been slow to recover given the relatively moderate pace of consumer spending growth. Average consumer deposits at Bank of America Corp. (NYSE:BAC ) increased marginally by 1% in 2010, to $411 billion. 

    Bank of America Corp. (NYSE:BAC) saw mixed results in 2010 with macroeconomic improvement that allowed the firm to reduce reserves for losses, bolstering profits. This means banks can commit more capital for lending, trading and other activities, creating upside potential for bank stocks. Still, the consumer banking, credit cards and mortgage business remains week and banks with heavy exposure to U.S. consumers may find it difficult to generate significant upside to current stock values. Read More.


    Shares of Bank of America Corp. (NYSE:BAC) are trading at $14.55 Today above the resistance level of $14.48. Major support points for Bank of America Corp. (NYSE:BAC) below current price are at $13.85, $13.29, $12.5, $11.95 and at $11.6. Resistance levels above current price are at $15.01 and $15.57.


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