CHARLOTTE, N.C - Monday, October 20th 2014 [ME NewsWire]
Results Include DoJ Settlement Costs of $5.3 Billion (Pretax) or $0.43 per Share (After Tax)
Continued Business Momentum
Four of Five Businesses Report Higher Net Income Compared to Year-ago Quarter
Originated $14.9 Billion in Residential Home Loans and Home Equity Loans in Q3-14, Helping More Than 43,500 Homeowners Purchase a Home or Refinance a Mortgage
More Than 1.2 Million New Credit Cards Issued in Q3-14, With 64 Percent Going to Existing Relationship Customers
Global Wealth and Investment Management Reports Record Revenue and Record Earnings
Total Firmwide Investment Banking Fees up 4 Percent From Q3-13 to $1.4 Billion
Sales and Trading Revenue, Excluding Net DVA, up 9 Percent From Q3-13(B)
Noninterest Expense, Excluding Litigation, Down $1.1 Billion From Q3-13 to $14.2 Billion(C)
Credit Quality Continued to Improve With Net Charge-offs Down 38 Percent From Q3-13 to $1.0 Billion; Net Charge-off Ratio of 0.46 Percent Is Lowest in a Decade
Capital and Liquidity Measures Remain Strong
Estimated Common Equity Tier 1 Ratio Under Basel 3 (Standardized Approach, Fully Phased-in) 9.6 Percent in Q3-14; Advanced Approaches 9.6 Percent in Q3-14(D)
Estimated Supplementary Leverage Ratios Above 2018 Required Minimums, With Parent Company at Approximately 5.5 Percent and Primary Bank at Approximately 6.8 Percent(E)
Global Excess Liquidity Sources Remain Strong at $429 Billion, up $70 Billion From Q3-13; Time-to-required Funding at 38 Months
Tangible Book Value per Share Increased 4 Percent From Q3-13 to $14.13 per Share(F)
(BUSINESS WIRE)-- Bank of America Corporation today reported net income of $168 million for the third quarter of 2014. After deducting dividends on preferred shares, the company reported a loss of $0.01 per share. The results include the previously announced pretax charge of $5.3 billion for the settlement with the Department of Justice, certain federal agencies and six states (DoJ Settlement), which impacted earnings per share by $0.43. Earnings in the year-ago period were $2.5 billion or $0.20 per diluted share.
Revenue, net of interest expense, on an FTE basis declined 1 percent from the third quarter of 2013 to $21.4 billion. Revenue, net of interest expense, on an FTE basis, excluding equity investment gains ($9 million in the third quarter of 2014 and $1.2 billion in the third quarter of 2013) and valuation adjustments related to changes in the company's credit spreads, increased 1 percent from the year-ago quarter to $21.2 billion from $21.0 billion(G).
“We saw solid customer and client activity and improved profitability in most of our businesses relative to the year-ago quarter,” said Chief Executive Officer Brian Moynihan. “We remain focused on streamlining and simplifying our company and connecting customers and clients with the real economy, an approach that is paying dividends for them and for our shareholders.”
"We continued to focus on optimizing the balance sheet this quarter so we can best serve the core financial needs of our customers and clients and still be in a position to meet new capital and liquidity requirements in an evolving regulatory framework," said Chief Financial Officer Bruce Thompson. "We also made significant progress on our cost structure, staying on track to meet the goals we established three years ago, and our credit quality metrics reflect both the improved environment and our risk underwriting."
Results Include DoJ Settlement Costs of $5.3 Billion (Pretax) or $0.43 per Share (After Tax)
Continued Business Momentum
Four of Five Businesses Report Higher Net Income Compared to Year-ago Quarter
Originated $14.9 Billion in Residential Home Loans and Home Equity Loans in Q3-14, Helping More Than 43,500 Homeowners Purchase a Home or Refinance a Mortgage
More Than 1.2 Million New Credit Cards Issued in Q3-14, With 64 Percent Going to Existing Relationship Customers
Global Wealth and Investment Management Reports Record Revenue and Record Earnings
Total Firmwide Investment Banking Fees up 4 Percent From Q3-13 to $1.4 Billion
Sales and Trading Revenue, Excluding Net DVA, up 9 Percent From Q3-13(B)
Noninterest Expense, Excluding Litigation, Down $1.1 Billion From Q3-13 to $14.2 Billion(C)
Credit Quality Continued to Improve With Net Charge-offs Down 38 Percent From Q3-13 to $1.0 Billion; Net Charge-off Ratio of 0.46 Percent Is Lowest in a Decade
Capital and Liquidity Measures Remain Strong
Estimated Common Equity Tier 1 Ratio Under Basel 3 (Standardized Approach, Fully Phased-in) 9.6 Percent in Q3-14; Advanced Approaches 9.6 Percent in Q3-14(D)
Estimated Supplementary Leverage Ratios Above 2018 Required Minimums, With Parent Company at Approximately 5.5 Percent and Primary Bank at Approximately 6.8 Percent(E)
Global Excess Liquidity Sources Remain Strong at $429 Billion, up $70 Billion From Q3-13; Time-to-required Funding at 38 Months
Tangible Book Value per Share Increased 4 Percent From Q3-13 to $14.13 per Share(F)
CHARLOTTE, N.C.--(BUSINESS WIRE)-- Bank of America Corporation today reported net income of $168 million for the third quarter of 2014. After deducting dividends on preferred shares, the company reported a loss of $0.01 per share. The results include the previously announced pretax charge of $5.3 billion for the settlement with the Department of Justice, certain federal agencies and six states (DoJ Settlement), which impacted earnings per share by $0.43. Earnings in the year-ago period were $2.5 billion or $0.20 per diluted share.
Revenue, net of interest expense, on an FTE basis declined 1 percent from the third quarter of 2013 to $21.4 billion. Revenue, net of interest expense, on an FTE basis, excluding equity investment gains ($9 million in the third quarter of 2014 and $1.2 billion in the third quarter of 2013) and valuation adjustments related to changes in the company's credit spreads, increased 1 percent from the year-ago quarter to $21.2 billion from $21.0 billion(G).
“We saw solid customer and client activity and improved profitability in most of our businesses relative to the year-ago quarter,” said Chief Executive Officer Brian Moynihan. “We remain focused on streamlining and simplifying our company and connecting customers and clients with the real economy, an approach that is paying dividends for them and for our shareholders.”
"We continued to focus on optimizing the balance sheet this quarter so we can best serve the core financial needs of our customers and clients and still be in a position to meet new capital and liquidity requirements in an evolving regulatory framework," said Chief Financial Officer Bruce Thompson. "We also made significant progress on our cost structure, staying on track to meet the goals we established three years ago, and our credit quality metrics reflect both the improved environment and our risk underwriting."
To view the full report and tables please click here.
Contacts
Investors May Contact:
Lee McEntire, Bank of America, 1.980.388.6780
Jonathan Blum, Bank of America (Fixed Income), 1.212.449.3112
Reporters May Contact:
Jerry Dubrowski, Bank of America, 1.980.388.2840
jerome.f.dubrowski@bankofamerica.com
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