• April 17, 2017
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Bank of America releases Q1 2017 results

• Net income increased 40% to $4.9 billion, and EPS increased 46% to $0.41, compared to $3.5 billion and $0.28, respectively
• Revenue, net of interest expense, increased 7% to $22.2 billion from $20.8 billion
– Net interest income (NII) increased 5% to $11.1 billion, reflecting benefits from higher interest rates, as well as growth in loans and deposits
– Noninterest income increased 9% to $11.2 billion from $10.3 billion, driven by higher sales and trading results and record Q1 investment banking fees

• Provision for credit losses declined 16% to $835 million from $997 million. Net charge-offs declined 13% to $934 million from $1.1 billion; the net charge-off ratio declined to 0.42% from 0.48%
• Despite higher revenue-related compensation expenses, total expense was flat at $14.8 billion
– Q1-17 included $1.4 billion in annual retirement-eligible incentive costs and seasonally elevated payroll tax vs. $1.2 billion in Q1-16

• Average loan balances in business segments3 rose $44 billion, or 6%, to $819 billion. Total average deposit balances increased $58 billion, or 5%, to $1.26 trillion.
• Return on average assets 0.88%; return on average common equity 7.3%; return on average tangible common equity 10.3%
• Book value per share rose 5% to $24.36; tangible
book value per share rose 6% to $17.23
• Repurchased a net $2.3 billion in common stock and paid $0.8 billion in common stock dividends

CEO Commentary

“Our approach to responsible growth delivered strong results again this quarter. Revenue was up 7 percent and EPS grew 46 percent. We saw good client activity in our balanced portfolio of businesses: consumer spending was up, our wealth management business had strong asset management flows, investment banking fees rebounded nicely, and we continued to provide credit and capital to our corporate and institutional clients to help them drive the economy forward. The U.S. economy continues to show consumer and business optimism, and our results reflect that.” - Brian Moynihan, Chief Executive Officer

CFO Commentary

"Each of our businesses reported higher revenue and earnings this quarter, and each recorded solid operating leverage. We grew loans and deposits, while remaining within our risk framework. We also did a good job managing expenses. Despite higher revenue-related expenses in our wealth management and capital markets businesses, we kept overall expenses flat year-over-year as we continued to focus on streamlining and simplifying our company. Our balance sheet remains strong. We grew capital even as we repurchased a net $2.3 billion in stock and paid $0.8 billion in common stock dividends in the quarter." — Paul M. Donofrio, Chief Financial Officer

Re-disseminated by The Asian Banker