Bank of America Corporation (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 April 15, 2020, announcing financial results for the first quarter ended March 31, 2020, reporting first quarter net income of $4.0 billion, or $0.40 per diluted share.
Q1-20 Financial Highlights1
- Net income of $4.0 billion, or $0.40 per diluted share, includes higher provision expense for COVID-19 related reserve build
- Pretax income declined 48% to $4.5 billion
- Pretax, pre-provision income down 5% to $9.3 billion2
- Provision for credit losses increased $4.8 billion, driven by a $3.6 billion reserve build2
- Revenue, net of interest expense, decreased 1% to $22.8 billion
- Net interest income (NII) declined 2% to $12.1 billion, driven by lower interest rates, partially offset by loan and deposit growth
- Noninterest income rose slightly to $10.6 billion
- Noninterest expense increased 2% to $13.5 billion, reflecting investments in the franchise; efficiency ratio of 59%
- Average loan and lease balances in the business segments rose $57 billion, or 6%, year-over-year to $954 billion
- Ending loan balances rose $68 billion, or 7%, since Q4-19 to $1.0 trillion
- Average deposit balances rose $79.5 billion, or 6%, year-over-year to $1.4 trillion
- Ending deposit balances rose $149 billion, or 10%, since Q4-19 to $1.6 trillion
- Common equity tier 1 (CET1) ratio declined slightly but remained strong at 10.8%
Q1-20 Business Segment Highlights1,3
Consumer Banking
- Net income of $1.8 billion
- Loans up 8% to $317 billion; deposits up 6% to $737 billion
- Consumer investment assets up 1% to $212 billion, driven by flows of $22 billion since Q1-19, largely offset by market performance
- Extended $2.4 billion in credit to small business clients, up 11%
- Client Support Actions:
- Received 279,000 small business loan applications through April 8 under the Paycheck Protection Program, totaling $43 billion
- Nearly 1 million payment deferral through April 8
Global Wealth and Investment Management
- Net income of $866 million
- Client balances of $2.7 trillion, reflecting market declines partially offset by higher loan/deposit balances; AUM flows of $26 billion since Q1-19
- Merrill added more than 7,500 net new households and Private Bank added more than 600 net new relationships
- Client Support Actions:
- Double-digit increase in wealth management client outreach
- Merrill shifting 700 advisors to support CARES Act inquiries; Private Bank aligning advisor trainees and wealth management analysts to support CARES Act application processing
Global Banking
- Net income of $136 million
- Firmwide investment banking fees (excl. self-led) up 10% to $1.4 billion; No. 3 ranking in investment banking fees
- Loans up 4% to $386 billion; deposits up 10% to $382 billion
- Client Support Actions:
- Extended $67 billion in net funding to commercial and corporate clients since year-end 2019 across all business segments
- Raised $224 billion in capital on behalf of clients
- Over 13,000 hours of training completed by employees to ensure readiness to support clients impacted by COVID-19
Global Markets
- Net income of $1.7 billion
- Sales and trading revenue of $4.6 billion, including net debit valuation adjustments (DVA) gains of $300 million
- Excluding net DVA, sales and trading revenue increased 22% to $4.3 billion
- FICC increased 13% to $2.7 billion
- Equities increased 39% to $1.7 billion
- Client Support Actions:
- Seamlessly supported clients by providing liquidity and a strong and resilient trading platform during period of record-breaking market activity
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: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
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1 Financial Highlights and Business Segment Highlights compare to the year-ago quarter unless noted. Loan and deposit balances are shown on an average basis unless noted.
2 Reserve build and pretax, pre-provision income (PTPI) represent non-GAAP financial measures.
3 The Corporation reports the results of operations of its four business segments and All Other on a fully-taxable equivalent (FTE) basis
View source version on businesswire.com: https://www.businesswire.com/news/home/20200415005725/en/
Contacts:
Amanda D. Daniel, North Carolina Certified Paralegal, Bank of America, Office +1 980.388.5923.