• April 14, 2016
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Bank of America reports Q1-16 net income of $2.7 billion, EPS of $0.21

Financial Highlights

• Revenue, net of interest expense (FTE basis) of $19.7 billion
– Excluding market-related net interest income (NII) adjustments, revenue (FTE basis) was $20.9 billion, compared to $21.6 billion in Q1-15
• NII (FTE basis) of $9.4 billion
– Excluding market-related NII adjustments, NII increased to $10.6 billion from $10.1 billion in Q1-15
• Noninterest income of $10.3 billion, compared to $11.5 billion
• Provision for credit losses of $997 million, compared to $765 million; net charge-offs declined to $1.1 billion from $1.2 billion
• Noninterest expense declined 1.0 billion, or 6%, to $14.8 billion
• Net income declined 13% to $2.7 billion, earningsper diluted share of $0.21 compared to $0.25
– Results include pretax $1.2 billion ($0.07 per share) negative impact for market-related NII adjustments and pretax $0.9 billion ($0.05 per share) in annual retirement-eligible incentive costs

Balance Sheet, Capital and Liquidity

• Total deposit balances grew $64.1 billion to $1.2 trillion
• Total loan balances grew $28.4 billion to $901.1 billion
• Common equity tier 1 capital (transition) of $162.7 billion; common equity tier 1 capital (fully phased-in) of $157.5 billion
• Global Excess Liquidity Sources increased $47 billion to record $525 billion; time to required funding at 36 months
• Return on average assets 0.50%; return on average common equity 3.8%; return on average tangible common equity 5.4%
– Excluding NII adjustments and annual retirement-eligible incentive costs, return on average assets 0.73% and return on average tangible common equity 8.4%
• Tangible book value per share increased 9% to $16.17; book value per share increased 7% to $23.12
• Repurchased $1.0 billion in common stock and paid $0.5 billion in common stock dividends

Business Segment Highlights

Consumer Banking

• Loans up $17.5 billion, deposits up $42.6 billion
• Brokerage assets up 7%
• Mobile banking users up 15% to 19.6 million
• Total credit/debit card spending up 5%

Global Wealth and Investment Management
• Total client balances of nearly $2.5 trillion
• Loans up $10.9 billion, deposits up $16.5 billion
• Pretax margin improved to 26%

Global Banking
• Loans up $39.1 billion, deposits up $7.7 billion
• Leading Global Investment Bank
• Participated in 5 of top 10 debt and 7 of top 10 equity underwriting deals

Global Markets
• Excluding net DVA, sales and trading revenue down 16%
– Fixed income down 17%
– Equities down 11%

Legacy Assets and Servicing
• Noninterest expense down 28% to $860 million; noninterest expense, excluding litigation, down 29% to $729 million
• Number of 60+ days delinquent first mortgage loans down 42% to 88,000 units

CEO Commentary
"This quarter, we benefited from good consumer and commercial banking activity. Our business segments earned $4.5 billion, up 16 percent from the year-ago quarter. This was partially offset by valuation adjustments from lower long-term interest rates and annual compensation expenses. Despite volatile markets, our Global Markets business produced solid earnings. As always, we are focused on loan and deposit growth and managing expenses. By doing that, we continue to improve on what we do best: helping consumers live their financial lives and helping businesses grow and employ more people," said Brian Moynihan, Chief Executive Officer.

Re-disseminated by The Asian Banker