Bank of America Corporation Filed a Form 8-K

CHARLOTTE, N.C.--()--Bank of America Company (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 July 18, 2017, announcing financial results for the second quarter ended June 30, 2017, reporting second quarter net income of $5.3 billion, or $0.46 per diluted share.

Q2-17 Financial Highlights (compare to the year-ago quarter unless noted)

  • Net income increased 10% to $5.3 billion, and EPS increased 12% to $0.46, compared to $4.8 billion and $0.41, respectively
    • Sale of the non-U.S. consumer credit card business resulted in a $103 million after-tax gain
  • Revenue, net of interest expense, increased 7% to $22.8 billion from $21.3 billion
    • Net interest income (NII) increased 9% to $11.0 billion, reflecting benefits from higher interest rates, as well as loan growth
    • Noninterest income increased 6% to $11.8 billion, driven primarily by the sale of the non-U.S. consumer credit card business and higher investment banking fees, partially offset by lower gains from the sale of debt securities and lower equity investment income
  • Provision for credit losses declined 26% to $726 million from $976 million. Net charge-offs declined 8% to $908 million from $985 million; the net charge-off ratio declined to 0.40% from 0.44%
  • Noninterest expense rose 2% to $13.7 billion
    • Q2-17 included $0.4 billion of expense for the combined impact of impairment charges related to certain data centers in process of being sold and increased severance in the quarter
    • Efficiency ratio improved to 60%
  • Average loan balances in business segments rose $39 billion, or 5%, to $827 billion. Total average deposit balances increased $44 billion, or 4%, to $1.26 trillion
  • Return on average assets 0.93%; return on average common equity 8.0%; return on average tangible common equity of 11.2%
  • Book value per share rose 5% to $24.88; tangible book value per share rose 6% to $17.78
  • More than doubled YTD capital returns from prior-year period through net share repurchases and common dividends

Q2-17 Business Segment Highlights (compare to the year-ago quarter unless noted)

Consumer Banking

  • Net income of $2 billion
  • Loans up $18.6 billion; deposits up $56.3 billion
  • Merrill Edge brokerage assets up 21%
  • Mobile banking active users increased 13% to 22.9 million

Global Wealth and Investment Management

  • Record net income of $804 million
  • Total client balances increased $198 billion to a record $2.6 trillion
  • Loans up $9.6 billion
  • Assets under management (AUM) flows of $28 billion in Q2-17

Global Banking

  • Record revenue of $5 billion
  • Loans increased $10.7 billion
  • Firmwide investment banking fees up 9% to $1.5 billion; record advisory fees
  • No. 3 in YTD IB fees

Global Markets

  • Sales and trading revenue of $3.2 billion, including negative net debit valuation adjustment (DVA) of $159 million
  • Excluding net DVA, sales and trading revenue down 9% vs. strong Q2-16
    • Fixed income down 14%
    • Equities up 3%

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: http://www.morningstar.co.uk/uk/NSM.

Contacts

Bank of America
Michael Pressman, +1 980 386-5083
Assistant General Counsel

Contacts

Bank of America
Michael Pressman, +1 980 386-5083
Assistant General Counsel