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Bank of America (BAC) Posts Q3 EPS of 37c

October 14, 2015 7:01 AM EDT

Bank of America (NYSE: BAC) reported Q3 EPS of $0.00, which may not compare with the analyst estimate of $0.33. Revenue for the quarter came in at $20.91 billion versus the consensus estimate of $20.77 billion.

"We saw solid results this quarter by continuing to execute our long-term strategy," said Chief Executive Officer Brian Moynihan. “The key drivers of our business -- deposit taking and lending to both our consumer and corporate clients -- moved in the right direction this quarter and our trading results on behalf of clients remained fairly stable in challenging capital markets conditions. Our balanced approach to serving customers and clients is on track as the economy continues to move forward."

"Our results this quarter reflect our ongoing efforts to improve operating leverage while continuing to invest in our business," said Chief Financial Officer Paul Donofrio. "We built capital and liquidity to record levels and grew total loans for the second consecutive quarter while continuing to operate within our risk framework."

Noninterest income was up 2 percent, or $181 million, from the year-ago quarter to $11.2 billion. Results for the most recent quarter reflected year-over-year increases in mortgage banking and card income, higher asset management fees and other income, partially offset by lower capital markets revenue and lower equity investment income.

The provision for credit losses increased $170 million from the third quarter of 2014 to $806 million. Net charge-offs were $932 million in the third quarter of 2015, compared to $1.1 billion in the second quarter of 2015 and $1.0 billion in the third quarter of 2014. The net charge-off ratio improved to 0.42 percent in the third quarter of 2015 from 0.46 percent in the year-ago quarter. The decline in net charge-offs was driven primarily by an improvement in consumer portfolio trends, partially offset by higher commercial charge-offs. The net reserve release was $126 million in the third quarter of 2015, compared to a net reserve release of $407 million in the third quarter of 2014.

Noninterest expense declined $6.3 billion, or 31 percent, from the third quarter of 2014 to $13.8 billion. Excluding litigation expense of $231 million in the third quarter of 2015 and $6.0 billion in the year-ago quarter, noninterest expense decreased 4 percent from the year-ago quarter to $13.6 billion, reflecting lower Legacy Assets and Servicing (LAS) expense(A). Continued cost management efforts allowed the company to continue to invest in growth opportunities while keeping expenses relatively flat from the prior quarter.

Capital and Liquidity Levels

  • Common Equity Tier 1 Capital (Transition) Increased to $161.6 Billion
  • Common Equity Tier 1 Capital (Fully Phased-in) Increased to Record $153.1 Billion(C)
  • Record Global Excess Liquidity Sources up $70 Billion to $499 Billion; Time-to-required Funding at 42 Months(D)
  • Tangible Book Value per Share up 10 Percent to $15.50 per Share(E)
  • Book Value per Share up 7 Percent to $22.41 per Share
  • Return on Average Assets 0.82 Percent; Return on Average Tangible Common Equity 10 Percent; Return on Average Common Equity 6.97 Percent(F)
  • Returned $3.1 Billion to Common Shareholders Year-to-Date Via Repurchases and Dividends

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



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