Bank of America (NYSE: BAC)
Bank of America, the second largest lender in the U.S. by assets, announced solid fiscal third-quarter results early Monday. Profit jumped 32% from the same period a year ago, thanks to rising interest rates and Trump tax cuts.
Shares of the Charlotte, North Carolina-based bank ended the regular session with a loss of 1.90% to $27.92 before rising marginally in after-hours trading. The stock has dropped more than 5% since the beginning of the year.
BAC Earnings & Outlook
The bank reported earnings of $7.167 billion during the quarter, up 32% from $5.424 billion in the same period a year ago. Adjusted for one-time items, earnings came in at $0.66 per share, ahead of $0.62 per share estimate of analysts surveyed by Refinitiv.
Revenue totaled to $22.8 billion, an increase of 4% and ahead of $22.67 billion projection. Expenses were $13.067 billion during the quarter, down 2% from $13.394 billion in the earlier-year quarter. Income tax expense was also down by more than 16 percent.
Consumer banking segment recorded a profit of $3.1 billion, up 49% from the third-quarter of the previous year. The gain was partially aided by lower taxes, reduced expenses, and improving credit. Profit was also up in all of its other major business segments.
Total loans climbed by 3%, while deposits went up by 4%. Provision for credit losses dropped by $111 million from 2018Q2 to $716 million on solid loan quality in key business areas like energy.
Bank of America CEO Comments
“Responsible growth, backed by a solid U.S. economy and a healthy U.S. consumer, combined to deliver the highest quarterly pre-tax earnings in our company’s history. This marks the 15th consecutive quarter of positive operating leverage, driven by continued growth in deposits, client balances in wealth management, solid loan growth, and disciplined expense management. Our strong balance sheet has allowed us to return $19 billion to shareholders so far this year in dividends and share buybacks. Our high-tech, high-touch approach continues to drive both client satisfaction and efficiencies,” commented Brian Moynihan, Chairman and Chief Executive Officer.
Bank of America Company Profile
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services.
The company provides unmatched convenience in the United States, serving approximately 67 million consumer and small business clients with approximately 4,400 retail financial centers, approximately 16,100 ATMs, and award-winning digital banking with more than 36 million active users, including nearly 26 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world.
Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange. – Bank of America
