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Net Charge Offs to Average Loans % is the net charge-offs divided by the average total loans during a specific period. This ratio measures the proportion of debt owed to a company that is unlikely to be recovered. A higher ratio means there’s more bad debt that is unlikely to be collected, which leads investors to believe it has a very risky portfolio.
The historical rank and industry rank for Bank of America's Net Charge Offs to Average Loans % or its related term are showing as below:
XSWX:BAC's Net Charge Offs to Average Loans % is not ranked *
in the Banks industry.
Industry Median: * Ranked among companies with meaningful Net Charge Offs to Average Loans % only.
Bank of America (XSWX:BAC) Net Charge Offs to Average Loans % Explanation
A Net Charge-off (NCO) is the dollar amount representing the difference between gross charge-offs and any subsequent recoveries of delinquent debt. The bad debt often needs to be written off and classified as gross charge-off. If any money is recovered from that debt, the recovered amount needs to be subtracted from gross charge-off, which is how we get the net charge-off.
Net Charge Offs to Average Loans % represents the amount of debt that a company believes it will never collect and is an indicator of a financial institution's loan portfolio performance. A higher ratio, especially when compared to the previous period or to other banks, would suggest that there’s more bad debt that is unlikely to be collected and the loan portfolio may be too risky.
Bank of America Net Charge Offs to Average Loans % Related Terms
Bank of America Net Charge Offs to Average Loans % Historical Data
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The historical data trend for Bank of America's Net Charge Offs to Average Loans % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Bank of America Net Charge Offs to Average Loans % Chart
Bank of America (XSWX:BAC) Net Charge Offs to Average Loans % Calculation
Net Charge Offs to Average Loans % is calculated as
Net Charge Offs to Average Loans %
=
Net Charge-offs
/
Average Total Loans
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Frequently Asked Questions
What does a Net Charge Offs to Average Loans % of 0.00% mean?
Bank of America (XSWX:BAC) has a Net Charge Offs to Average Loans % of 0.00% as of . 20. Net Charge Offs Average Loans is the net charge-offs divided by the average total loans during a specific period. View historical data on Bank of America and its competitors.
Is Bank of America's Net Charge Offs to Average Loans % too high?
Bank of America's current Net Charge Offs to Average Loans % is 0.00%. Overall, Bank of America has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does Bank of America's Net Charge Offs to Average Loans % compare to WFC and C?
Bank of America's Net Charge Offs to Average Loans % of 0.00% can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Charge Offs to Average Loans % for a Banks company?
A good Net Charge Offs to Average Loans % depends on the Banks industry context. However, Net Charge Offs to Average Loans % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Charge Offs to Average Loans % mean?
A high Net Charge Offs to Average Loans % can signal that a stock is expensive relative to its fundamentals. Net Charge Offs Average Loans is the net charge-offs divided by the average total loans during a specific period. View historical data on Bank of America and its competitors. Bank of America's current Net Charge Offs to Average Loans % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bank of America stock overvalued right now?
Bank of America (XSWX:BAC) has a current Net Charge Offs to Average Loans % of 0.00%. The stock's GF Value™ is CHF43.37, compared to a current price of CHF50.91 — trading 17.4% above its estimated fair value. The current Net Charge Offs to Average Loans % is 0.00%. Bank of America's overall GF Score™ is 78/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Charge Offs to Average Loans % calculated?
Net Charge Offs to Average Loans % is calculated from a company's financial statements. For Bank of America (XSWX:BAC), the current Net Charge Offs to Average Loans % is 0.00% as of . 20. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Bank of America (XSWX:BAC) Overvalued in 2026?
Based on GuruFocus' analysis, Bank of America stock appears to be overvalued.
The current stock price of CHF50.91 is trading 17.4% above its estimated GF Value™ of CHF43.37.
Key valuation signals for XSWX:BAC:
Net Charge Offs to Average Loans %: 0.00%
GF Value™: CHF43.37 vs. price of CHF50.91 (17.4% above fair value)
No single metric tells the full story. See the XSWX:BAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bank of America is a formidable financial titan with a $3.5 trillion balance sheet and a cornerstone of the American economy, holding the second-largest deposit market share in the United States. While the firm has maintained its stronghold among middle-market and retail clientele domestically, Bank of America has continued to hold its own on the global stage, as evidenced by its fourth-largest global trading operation and an investment banking division that regularly finishes in the top four in global league tables. The firm is organized across four segments: consumer banking, global wealth and investment management, global banking, and global markets.
78GF Score
Get the complete analysis for XSWX:BAC
Net Charge Offs to Average Loans % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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