Bank of America Reports Sharp Increase in Profit to $3.2B for Q4
Press release from the issuing company
Thursday, January 16th, 2014
Fourth-quarter 2013 Results Included
- Pretax Negative DVA/FVO Adjustments of $0.6 Billion due to Tightening of the Company's Credit Spreads
- Pretax Litigation Expense of $2.3 Billion
- Effective Tax Rate of 10.6 Percent
Fourth-quarter 2013 Highlights Compared to Year-ago Quarter
- Period-end Consolidated Deposit Balances Increased $14 Billion to Record $1.12 Trillion
- Period-end Loan Balances Increased $20 Billion to $928 Billion
- Combined Debit and Consumer Credit Card Spending Rose 4.0 Percent to $123 Billion
- Period-end Commercial Loan Balances Increased $42 Billion to $396 Billion
- Global Wealth and Investment Management Pretax Margin Increased to 26.6 Percent From 21.1 Percent
- Record Global Banking Revenue of $4.3 Billion, up 9 Percent
- Achieved New BAC and Legacy Assets and Servicing 2013 Cost Savings Targets
- Credit Quality Continued to Improve With Net Charge-offs Down 49 Percent; Ratio at 0.68 Percent
- Basel 1 Tier 1 Common Capital of $145 Billion, Ratio of 11.19 Percent
- Basel 3 Tier 1 Common Capital Ratio of 9.96 Percent, up From 9.25 PercentD
Full-year 2013 Highlights Compared to Full-year 2012
- Nearly $90 Billion in Residential Home Loans and Home Equity Loans Funded in 2013
- More Than 3.9 Million New Consumer Credit Cards Issued in 2013
- Record Earnings of $3 Billion in Global Wealth and Investment Management
- Bank of America Merrill Lynch Gained Market Share and Maintained No. 2 Ranking in Global Investment Banking FeesC
- Liquidity Remained Strong at $376 Billion; Parent Company Time-to-required Funding Improved to 38 Months From 33 Months
- Initiated Capital Return to Shareholders Through Repurchase of $3.2 Billion of Common Stock at an Average Price of $13.90 per Share
Bank of America Corporation today reported net income of $3.4 billion, or $0.29 per diluted share, for the fourth quarter of 2013, compared to $732 million, or $0.03 per diluted share in the year-ago period. Revenue, net of interest expense, on an FTE basisA rose 15 percent from the fourth quarter of 2012 to $21.7 billion.
For the year ended December 31, 2013, net income increased to $11.4 billion, or $0.90 per diluted share, from $4.2 billion, or $0.25 per diluted share, in 2012. Revenue, net of interest expense, on an FTE basisA rose 7 percent to $89.8 billion.
"We are pleased to see the core businesses continue to perform well, serving our customers and clients," said Chief Executive Officer Brian Moynihan. "While work remains on past issues, our two hundred forty thousand teammates continue to do a great job winning in the marketplace."
“We enter this year with one of the strongest balance sheets in our company’s history,” said Chief Financial Officer Bruce Thompson. “Capital and liquidity are at record levels, credit losses are at historic lows, our cost savings initiatives are on track and yielding significant savings, and our businesses are seeing good momentum.”
