Bank of America (BAC) Reports Q3 EPS of 48c

(Updated - October 13, 2017 6:56 AM EDT)

Bank of America (NYSE: BAC) reported Q3 EPS of $0.48, may not compare to the analyst estimate of $0.46. Revenue was $21.8 billion vs $21.98 billion expected.

• Net income increased 13% to $5.6 billion, and diluted EPS increased 17% to $0.48
• – YTD net income increased 19% to $15.7 billion
• Revenue, net of interest expense, increased 1% to $21.8 billion from $21.6 billion
• – Net interest income (NII) increased $960 million, or 9%, to $11.2 billion, reflecting benefits from higher interest rates, as well as loan and deposit growth(A)
• – Noninterest income decreased $756 million, or 7%, to $10.7 billion, driven primarily by lower mortgage banking income and lower sales and trading revenue, partially offset by higher asset management fees
• Credit quality remained strong. Provision for credit losses decreased 2% to $834 million from $850 million. Net charge-offs increased 1% to $900 million from $888 million; the net chargeoff ratio declined to 0.39% from 0.40%
• Noninterest expense declined $342 million, or 3%, to $13.1 billion with reductions in both personnel and non-personnel expenses – Efficiency ratio improved to 60% from 62% •
• Average loan balances in business segments rose $46 billion, or 6%, to $842 billion3
• Total average deposit balances increased $45 billion, or 4%, to $1.27 trillion
• Return on average assets of 0.98%; return on average common equity of 8.1%; return on average tangible common equity of 11.3%(B)
• Book value per share declined 1% to $23.92; tangible book value per share(B) rose 1% to $17.23. Book value and tangible book value per share include an increase in common shares outstanding associated with the conversion of preferred shares held by Berkshire Hathaway into common stock
• Repurchased $7.9 billion in common stock and paid $2.8 billion in common dividends YTD

For earnings history and earnings-related data on Bank of America (BAC) click here.

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