-=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.