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Wednesday, January 17, 2018

-=Bank of America (BAC) reported earnings on Wed 17 Jan 2017 (b/o)

Bank of America beats by $0.02, misses on revs 
  • Reports Q4 (Dec) earnings of $0.47 per share, $0.02 better than the Capital IQ Consensus of $0.45; revenues rose 3.5% year/year to $20.69 bln vs the $21.61 bln Capital IQ Consensus.
  • Net income exludes a charge of $2.9 billion, or $0.27 per diluted share, related to the Tax Cuts and Jobs.
  • Net interest income (NII) increased $1.2 billion, or 11%, to $11.5 billion, reflecting benefits from higher interest rates, as well as loan and deposit growth.
  • Net charge-offs rose to $1.2 billion from $880 million, primarily driven by a single-name non-U.S. commercial charge-off totaling $292 million;Net charge-off ratio 0.53% compared to 0.39% in prior year period;
  • Provision for credit losses rose to $1.0 billion from $774 million;
  • Loans up 9%; deposits up 8%.
  • Sales and trading revenue of $2.5 billion, including negative net debit valuation adjustment (DVA) of $118 million; Excluding net DVA, sales and trading revenue down 9% vs. strong Q4-16
    • FICC down 13% to $1.71 bln, expectations were for a decline of 15% or approx $1.65 bln ;
    • Equities were flat y/y.
  • Efficiency ratio improved to 50% from 53%, despite continued investment in primary sales professionals and financial center builds/renovations.
  • Net Interest Yield 2.39%, up 16 bps y/y.

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