Bank of America beats by $0.08, reports revs in-line
Reports Q3 (Sep) loss of $0.01 per share, $0.08 better than the Capital IQ Consensus Estimate of ($0.09); revenues fell 2.4% year/year to $21.43 bln vs the $21.33 bln consensus.
Highlights
Highlights
- BAC reported net income of $168 million for Q3. After deducting dividends on preferred shares, the company reported a loss of $0.01 per share. The results include the previously announced pretax charge of $5.3 billion for the settlement with the DoJ which impacted earnings per share by $0.43.
- Including the incremental credit costs associated with the DoJ Settlement, the reserve release was $407 million in Q3, compared to a reserve release of $1.4 billion in the third quarter of 2013.
- Consumer and Business Banking reported net income of $1.9 billion, up $69 million, or 4% y/y, driven by lower provision for credit losses. Revenue was relatively stable compared to the year-ago quarter, as lower net interest income resulting from lower loan balances and yields was partially offset by higher noninterest income due to higher service charges and card income.
- The company originated $11.7 billion in first-lien residential mortgage loans and $3.2 billion in home equity loans in the third quarter of 2014, compared to $11.1 billion and $2.6 billion, respectively, in the second quarter of 2014, and $22.6 billion and $1.8 billion, respectively, in the year-ago quarter.
- Fixed Income, Currency and Commodities sales and trading revenue, excluding net DVA, increased 11 percent from the year-ago quarter, driven by strong results in currencies due to increased volatility in the period as well as gains in mortgages and commodities. Equities sales and trading revenue, excluding net DVA, increased 6 percent, from the year-ago quarter, driven by increased client financing revenue.
- Common equity tier 1 capital ratio was 12.0%.
- Estimated SLR for the parent company was approximately 5.5%.
- Tangible book value per share was $14.13.
- Book value per share was $21.03.