Bank of America (BAC) Tops Q1 EPS by 7c
Bank of America (NYSE: BAC) reported Q1 EPS of $0.36, $0.07 better than the analyst estimate of $0.29. Revenue for the quarter came in at $21.4 billion versus the consensus estimate of $21.51 billion.
“Continuing the trend from last quarter, we saw core loan and deposit growth, higher mortgage originations, and increased wealth management client balances," said Chief Executive Officer Brian Moynihan. “We retained a top position in investment banking as our team generated the highest advisory fees since the Merrill Lynch merger. We see continued encouraging signs in customer and client activity, with consumer spending increasing and utilization of credit by our commercial customers rising. This should bode well for the near-term economic outlook.
“At a time of continued low interest rates, we had good expense control as we focus on responsible growth with a balanced platform to create long-term value for customers and shareholders.”
"We continued to strengthen an already strong and liquid balance sheet this quarter," said Chief Financial Officer Bruce Thompson. "We improved our liquidity, accreted capital and tightly managed expenses in a challenging interest rate environment. Meanwhile, credit quality remained strong, reflecting both the economic environment and our risk underwriting."
Noninterest income was down 6 percent from the year-ago quarter to $11.8 billion. Excluding net DVA and equity investment income in both periods, noninterest income was up 1 percent from the year-ago quarter, driven by higher mortgage banking income and higher investment and brokerage services income, partially offset by lower sales and trading results and lower gains on sales of debt securities
BAC also noted: Equities sales and trading revenue, excluding net DVA, of $1.2 billion was steady from the year-ago quarter.
Capital and Liquidity Management1,2,3 | |||||||||||
| (Dollars in billions) | At March 31 2015 | At December 312014 | |||||||||
| Basel 3 Transition (under standardized approach) | |||||||||||
| Common equity tier 1 capital - Basel 3 | $ | 155.4 | $ | 155.4 | |||||||
| Risk-weighted assets | 1,402.3 | 1,261.5 | |||||||||
| Common equity tier 1 capital ratio - Basel 3 | 11.1 | % | 12.3 | % | |||||||
| Basel 3 Fully Phased-in (under standardized approach)3 | |||||||||||
| Common equity tier 1 capital - Basel 3 | $ | 147.2 | $ | 141.2 | |||||||
| Risk-weighted assets | 1,427.7 | 1,415.3 | |||||||||
| Common equity tier 1 capital ratio - Basel 3 | 10.3 | % | 10.0 | % | |||||||
| (Dollars in millions, except per share information) | At March 31 2015 | At December 312014 | At March 312014 | ||||||||
| Tangible common equity ratio4 | 7.5 | % | 7.5 | % | 7.0 | % | |||||
| Total shareholders’ equity | $ | 250,188 | $ | 243,471 | $ | 231,888 | |||||
| Common equity ratio | 10.6 | % | 10.7 | % | 10.2 | % | |||||
| Tangible book value per share4 | $ | 14.79 | $ | 14.43 | $ | 13.81 | |||||
| Book value per share | 21.66 | 21.32 | 20.75 | ||||||||
For earnings history and earnings-related data on Bank of America (BAC) click here.