Bank of America reports third quarter 2016 net income of $5.0 billion, EPS of $0.41

October 27, 2016
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Bank of America reports third quarter 2016 net income of $5.0 billion, EPS of $0.41

Financial Highlights

Revenue, net of interest expense, increased 3% to $21.6 billion from $21.0 billion

Net interest income (NII) increased 3% to $10.2 billion from $9.9 billion (GAAP basis)(A)
Noninterest income increased 3% to $11.4 billion from $11.1 billion

Provision for credit losses of $850 million, compared to $806 million; net charge-offs declined to $888 million from $932 million
Noninterest expense declined 3%, or $458 million, to $13.5 billion
Pretax earnings up 17% to $7.3 billion
Net income increased 7% to $5.0 billion and EPS increased 8% to $0.41, compared to $4.6 billion and $0.38, respectively
Loan balances up $23 billion, or 3%, to $905 billion
Deposit balances up $71 billion, or 6%, to $1.23 trillion

Business Segment Highlights

Consumer Banking

Loans up $16.1 billion; deposits up $60.4 billion
Brokerage assets up 18%
Mobile banking active users up 16% to 21.3 million
Total credit/debit card spending up 5%

Global Wealth and Investment Management

Total client balances of nearly $2.5 trillion
Loans up $9.2 billion; deposits up $6.8 billion
Pretax margin improved to 25%
Long-term AUM flows of $10.2 billion

Global Banking

Loans up $20.5 billion; deposits up $3.4 billion
Total Corporate Investment Banking fees up 13% to $1.5 billion
Participated in all of the top 10 debt underwriting deals

Global Markets

Sales and trading revenue up 14%

Fixed income up 32%
Equities down 17%

Excluding net DVA, sales and trading revenue up 18%

Fixed income up 39%
Equities down 17%

Key Performance Metrics

Return on average assets 0.90%; return on average common equity 7.3%; return on average tangible common equity 10.3%(D)
Book value per share increased 8% to $24.19; tangible book value per share(D) increased 11% to$17.14
Repurchased $1.4 billion in common stock and paid $0.8 billion in common stock dividends

CEO Commentary
“We delivered strong results this quarter by staying true to our strategy of responsible growth and focusing on the quality of the relationships with our customers and clients. We grew revenue, reduced expenses and continued to manage risk, resulting in a 17 percent increase in pretax earnings. Our investments in innovation, including industry-leading digital banking
capabilities, continue to transform how we serve our customers. This innovation across our businesses is benefiting customers and shareholders,” said Brian Moynihan, Chief Executive Officer.

Re-disseminated by The Asian Banker