What are the risks to BAC's EPS growth?

Bank of America's (BAC) EPS growth is subject to several risks that could negatively impact its earnings per share: 1. **Economic Recession**: A potential economic downturn could lead to a significant undercutting of earnings growth, causing a drop in EPS by 10% to 20%. This is a notable risk as it directly affects the profitability of the bank. 2. **Tariff Policies**: The implementation of retaliatory tariffs as a result of trade plans could trigger a 10% hit to EPS. This risk is tied to the uncertainty surrounding trade policies, which can have a substantial impact on corporate earnings. 3. **Geopolitical Conditions**: Adverse geopolitical conditions, such as political or civil unrest, labor shortages, wage pressures, and elevated production costs, could also affect EPS growth. These risks are more broadly related to macroeconomic stability, which can influence corporate performance. 4. **Interest Rates and Bond Yields**: Changes in interest rates and bond yields, as seen in the post-election market, can affect BAC's earnings. Softer-than-expected economic data or policy changes could lead to a decline in bond yields, impacting the bank's income. In summary, BAC's EPS growth is at risk due to potential economic recession, tariff policies, geopolitical conditions, and interest rates and bond yields. These risks could lead to a significant impact on the bank's earnings, making it crucial for the bank to manage these risks effectively.