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Bank Of America (BAC) Posts Q2 EPS of 32c; Capital Ratios Improve

July 17, 2013 7:01 AM EDT
(Updated - July 17, 2013 7:07 AM EDT)

Bank Of America Corp. (NYSE: BAC) reported Q2 EPS of $0.32, $0.07 better than the analyst estimate of $0.25. Revenue for the quarter came in at $22.95 billion versus the consensus estimate of $22.61 billion.

The Tier 1 common capital ratio, including the Market Risk Final Rule, was 10.83 percent at June 30, 2013, up from 10.49 percent at March 31, 2013. Prior to March 31, 2013, reported Basel 1 results were not calculated using the Market Risk Final Rule, which became effective on January 1, 2013.

As of June 30, 2013, the company's Tier 1 common capital ratio on a Basel 3 fully phased-in basis was estimated at 9.60 percent, up from 9.52 percent at March 31, 2013 and 7.95 percent at June 30, 2012.

Under Basel 3, the estimated Tier 1 common capital ratio increased from the first quarter of 2013 primarily due to lower risk-weighted assets, offset by a net decline in Tier 1 common capital. Estimated Basel 3 risk-weighted assets were lower than the first quarter of 2013 due to an overall improvement in credit quality. The decline in estimated Tier 1 common capital under Basel 3 was driven primarily by unrealized losses on available-for-sale debt securities recognized in other comprehensive income, partially offset by favorable earnings.

Tangible book value per share was $13.32 at June 30, 2013, compared to $13.36 at March 31, 2013 and $13.22 at June 30, 2012. Book value per share was $20.18 at June 30, 2013, compared to $20.19 at March 31, 2013 and $20.16 at June 30, 2012.

Previously, Bank of America stated that by the end of 2013, noninterest expense in LAS, excluding litigation expenses, was expected to decline to $2.1 billion a quarter and the number of 60+ days delinquent mortgage loans would decline to 400,000. Based on the progress in the first half of 2013, the company now expects that by the fourth quarter of 2013, noninterest expense in LAS, excluding litigation costs will be below $2.0 billion and that the number of 60+ days delinquent mortgage loans will decline below 375,000.

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


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