Results Include $1.0 Billion ($0.06 per Share) in Annual Retirement-eligible Incentive Costs and $0.5 Billion ($0.03 per Share) in Charges to Revenue for Market-related Net Interest Income Adjustments
CHARLOTTE, N.C. - Wednesday, April 22nd 2015 [ME NewsWire]
Continued Business Momentum
Period-end Deposit Balances Increased to Record $1.15 Trillion
Originated $17 Billion in First-lien Residential Mortgage Loans and Home Equity Loans
Issued 1.2 Million New Credit Cards With 66 Percent Going to Existing Relationship Customers
Merrill Edge Brokerage Assets Increased 18 Percent From Q1-14 to $118 Billion
Wealth Management Asset Management Fees up 10 Percent From Q1-14 to $2.1 Billion
Global Banking Increased Period-end Loans by $6 Billion From Q1-14 to $296 Billion
Bank of America Merrill Lynch Firmwide Investment Banking Fees at $1.5 Billion, With Highest Advisory Fees Since the Merrill Lynch Merger
Continued Progress on Expense Management; Credit Quality Remains Strong
Reduced Noninterest Expense Excluding Litigation and Annual Retirement-eligible Incentive Costs by 6 Percent From Q1-14 to $14.3 Billion(A)
Number of 60+ Days Delinquent First Mortgage Loans Serviced by Legacy Assets and Servicing Down 45 Percent From Q1-14 to 153,000 Loans
Credit Quality Improved With Adjusted Net Charge-offs Down 28 Percent From Q1-14(B)
Record Capital and Liquidity Levels
Estimated Common Equity Tier 1 Ratio Under Basel 3 (Standardized Approach, Fully Phased-in) 10.3 Percent; Advanced Approaches 10.1 Percent(C)
Estimated Supplementary Leverage Ratios Above 2018 Required Minimums, With Bank Holding Company at 6.3 Percent and Primary Bank at 7.1 Percent(D)
Record Global Excess Liquidity Sources of $478 Billion, up $51 Billion From Q1-14; Time-to-required Funding at 37 Months
Consolidated Liquidity Coverage Ratio Exceeds 2017 Requirements(E)
Tangible Book Value per Share Increased 7 Percent From Q1-14 to $14.79 per Share(F)
Book Value per Share Increased 4 Percent From Q1-14 to $21.66 per Share
(BUSINESS WIRE)-- Bank of America Corporation today reported net income of $3.4 billion, or $0.27 per diluted share, for the first quarter of 2015, compared to a loss of $276 million, or $0.05 per share, in the year-ago period.
Revenue, net of interest expense, on an FTE basis, declined $1.3 billion from the first quarter of 2014 to $21.4 billion(G). Nearly $1 billion of this decline was related to a $757 million reduction in equity investment income as the prior year included a gain on sale of a portion of an equity investment, and $211 million was related to additional market-related adjustments on the company's debt securities portfolio due to the impact of lower long-term interest rates. Excluding these two items, as well as net debit valuation adjustments (DVA) in both periods, revenue decreased 1 percent to $21.9 billion in the first quarter of 2015 from $22.1 billion in the year-ago quarter(H).
“Continuing the trend from last quarter, we saw core loan and deposit growth, higher mortgage originations, and increased wealth management client balances," said Chief Executive Officer Brian Moynihan. “We retained a top position in investment banking as our team generated the highest advisory fees since the Merrill Lynch merger. We see continued encouraging signs in customer and client activity, with consumer spending increasing and utilization of credit by our commercial customers rising. This should bode well for the near-term economic outlook.
“At a time of continued low interest rates, we had good expense control as we focus on responsible growth with a balanced platform to create long-term value for customers and shareholders.”
"We continued to strengthen an already strong and liquid balance sheet this quarter," said Chief Financial Officer Bruce Thompson. "We improved our liquidity, accreted capital and tightly managed expenses in a challenging interest rate environment. Meanwhile, credit quality remained strong, reflecting both the economic environment and our risk underwriting."
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Investors May Contact:
Lee McEntire, Bank of America, 1.980.388.6780
Jonathan Blum, Bank of America (Fixed Income), 1.212.449.3112
Reporters May Contact:
Jerry Dubrowski, Bank of America, 1.980.388.2840