Bank of America reported Q4/15 and full year earnings of $3.0 billion and $14.4 billion, respectively, up from $2.7 billion and $3.8 billion for the same periods in 2014. Q4/15 and full year revenue, net of interest expense, compared to $19.5 billion and $82.5 billion, respectively up from $18.7 billion and down from $84.2 billion a year earlier

The bank noted its increase in provision for credit losses of $591 million in Q4 reflected higher reserve builds in the commercial portfolio due to loan growth and energy sector exposure. Bank of America noted its criticized commercial exposures increased to $16.5 billion in Q4/15 from $11.6 billion in Q4/14 primarily due to increases in the energy sector.

The following highlights were excerpted from the news release:

• Q4/15 net income of $3.0 billion was up from $2.7 billion a year earlier. Full year 2015 net income of $14.4 billion was up from $3.8 billion in 2014.
• Q4/15 total revenue, net of interest expense, was $19.5 billion, up from $18.7 billion in Q4/14. Full year revenue, net of interest expense of $82.5 billion, was down from $84.2 billion a year earlier.
• Q4/15 diluted earnings per share of $0.28 exceeded analysts polled by Thomson Financial of $0.26.
• Q4/15 provision for credit losses of $810 million was up from $219 million or $591 million a year partially reflecting higher reserve builds in the commercial portfolio due to loan growth and energy sector exposure. The bank noted criticized commercial exposures increased to $16.5 billion in Q4/15 from $11.6 billion in Q4/14 primarily due to increases in the energy sector. The full year provision for credit losses of $3.2 billion was up from $2.3 billion.

“The 2015 results were our highest earnings in nearly a decade, reflecting the work we’ve done to develop a straightforward operating model focused on responsible growth and doing more business with each customer and client,” said Brian Moynihan, CEO of Bank of America. “We saw solid customer activity in loan growth, deposits and wealth management asset flows, and we returned more capital to our shareholders. As we build on this progress, we will continue to invest in the future and manage expenses.”