Bank of America reports record quarterly earnings.
• Pretax income up 15% to $8.4 billion
• Net income up 30% to a record $6.9 billion
• Diluted earnings per share up 38% to $0.62
• Revenue, net of interest expense, increased 4% to $23.1 billion
– Net interest income (NII) increased $550 million, or 5%, to $11.6 billion, reflecting benefits from higher interest rates, as well as oan and deposit growth.
– Noninterest income increased $327 million, or 3%, to $11.5 billion, reflecting strength in Equities and higher asset management fees.
• Provision for credit losses stable at $834 million
• Noninterest expense declined $196 million, or 1%, to $13.9 billion; efficiency ratio improved to 60%
• The Tax Act resulted in an ongoing reduction to the effective tax rate of approximately 9 percentage points
• Average loan balances in business segments rose $45 billion, or 5%, to $864 billion
• Average deposit balances rose $41 billion, or 3%, to a record $1.3 trillion, led by Consumer Banking
• Solid financial returns
– Return on average assets 1.21%
– Return on average common shareholders’ equity 10.8%
– Return on average tangible common shareholders’ equity 15.3%3
"Our responsible growth model continues to deliver consistent results. Strong client activity, coupled with a growing global economy and solid U.S. consumer activity, led to record quarterly earnings. We grew loans in our business segments by $45 billion and increased deposits by $41 billion. We continue to invest in new capabilities in our mobile banking app, the expansion and renovation of our financial centers, and the hiring of additional client relationship professionals. We believe these investments, and our focus on operational excellence, will drive sustainable growth over time.”
Brian Moynihan, Chief Executive Officer
Re-disseminated by The Asian Banker