Bank of America Company (the "Corporation") informed its securities holders that it has filed a Current Report on Form 8-K with the U.S. Securities and Exchange Commission ("SEC") on October 13, 2017, announcing financial results for the third quarter ended September 30, 2017, reporting third quarter net income of $5.6 billion, or $0.48 per diluted share.
Q3-17 Financial Highlights (compare to the year-ago quarter unless noted)
- Net income increased 13% to $5.6 billion, and diluted EPS increased 17% to $0.48
- Year-to-date (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
- Noninterest income decreased $756 million, or 7%, to $10.7 billion, driven primarily by the 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 charge-off 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 billion
- 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%
- Book value per share declined 1% to $23.92; tangible book value per share 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
Q3-17 Business Segment Highlights (compare to the year-ago quarter unless noted)
Consumer Banking
- Revenue rose 10% to $8.8 billion
- Loans up 8%; deposits up 9%
- Merrill Edge brokerage assets up 21%
- Mobile banking active users increased 11% to 23.6 million
- Credit/debit spend up 7% to $137 billion
Global Wealth and Investment Management
- Revenue rose 6% to $4.6 billion
- Total client balances increased $186 billion to a record of nearly $2.7 trillion
- Loans increased 8%
- Record assets under management (AUM) balances of more than $1 trillion
Global Banking
- Revenue rose 5% to $5.0 billion
- Loans increased 4%
- Deposits increased 3%
- Firmwide investment banking fees up 1% to $1.5 billion; best Q3 since the Merrill Lynch merger
Global Markets
- Sales and trading revenue of $3.1 billion, including negative net debit valuation adjustment (DVA) of $21 million
- Excluding net DVA, sales and trading revenue down 15% vs. strong Q3-16
- FICC down 22%
- Equities up 2%
Bank of America Corporation makes available all of its SEC filings on its website: http://investor.bankofamerica.com/phoenix.zhtml?c=71595&p=irol-irhome.
The SEC maintains a website that contains reports, proxy statements and other information regarding issuers that file electronically with the SEC. These materials may be obtained electronically by accessing the SEC's website at http://www.sec.gov. A copy of the document will also be available on the National Storage Mechanism's website at: http://www.morningstar.co.uk/uk/NSM.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171013005506/en/
Contacts:
Bank of America,
Michael Pressman, +1-980-386-5083
Assistant General Counsel