Bank of America Q2 EPS Beats the Street



Bank of America reported Q2/17 net income of $5.3 billion, up 10% from $4.8 billion a year earlier. Earnings per share of $0.46 were up 12%, exceeding estimates of analysts polled by Thomson Reuters of $0.43 EPS. Revenue, net of interest expense, increased 7% to $22.8 billion, up from $21.3 billion in the same quarter a year earlier.

The following highlights were excerpted from the news release:

  • Provision for credit losses improved 26% to $726 million, down from $976 million a year earlier. Net charge-offs declined 8% to $908 million.
  • Average business segment loan balances rose $39 billion, or 5%, to $827 billion.
  • The net reserve release of $182 million, compared to $9 million in the year-ago quarter, was driven by continued improvements in consumer real estate and energy exposures.

Brian Moynihan, CEO, said, “Against modest economic growth of 2%, we had one of the strongest quarters in our history. All of our businesses delivered strong results with several setting new records. The investments we made to transform how we serve clients produced 500 basis points of leverage in the quarter. We achieved our 60% efficiency ratio target, and we continued to manage credit risk carefully in line with responsible growth. This supports our plan to return $17 billion in capital during the next four quarters, including a 60% increase in the quarterly dividend.”


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