• July 19, 2018
• views
• Print

Bank of America reports 2018 Q2 financial results

Bank of America reports quarterly earnings.

Financial Highlights

• Net income up 33% to $6.8 billion, driven by improved operating performance and the benefits of tax reform.
• Diluted earnings per share up 43% to $0.63.

• Revenue, net of interest expense, decreased 1% to $22.6 billion; Q2-17 revenue of $22.8 billion included a $793 million pretax gain on the sale of our non-U.S. consumer card business; excluding that gain, revenue up 3%.
  
  • Net interest income (NII) increased $664 million, or 6%, to $11.7 billion, reflecting benefits from higher interest rates, as well as loan and deposit growth.
  • Noninterest income decreased $884 million, or 7%, to $11.0 billion; prior period includes the $793 million gain referenced above.

• Provision for credit losses increased $101 million to $827 million
  
  • Net charge-off ratio remained low at 0.43%

• Noninterest expense declined $698 million, or 5%, to $13.3 billion
  
  • Q2-17 expense of $14.0 billion included a $295 million data center impairment charge; excluding that charge, noninterest expense down 3%.

• Average loan balances in business segments rose $45 billion, or 5%, to $872 billion
  
  • Consumer up 6% and commercial up 5%

• Average deposit balances rose $44 billion, or 3%, to $1.3 trillion

• Returned $6.2 billion to shareholders in Q2-18 through common dividends and share repurchases

“Solid operating leverage and client activity drove earnings higher this quarter. Responsible growth continued to deliver as a driver for every area of the company. We grew consumer and commercial loans; we grew deposits; we grew assets within our Merrill Edge business; we generated more net new households in Merrill Lynch; and we supported more institutional client activity — all of this while we continued to invest in our businesses and began an additional $500 million technology investment, which we intend to spend over the next several quarters, due to the benefits we received from tax reform. Even while making investments in people, technology, new markets and real estate, we managed to lower expenses again this period.”

- Brian Moynihan, Chairman and Chief Executive Officer

Re-disseminated by The Asian Banker