Summary
Bank of America Corporation (BAC) reported a significant recovery in net income for 2015, reaching $15.9 billion, a substantial increase from $4.8 billion in 2014. This improvement was largely driven by a considerable decrease in litigation expenses, which significantly impacted the prior year's results. The bank maintained a strong capital position, with a Common Equity Tier 1 (CET1) capital ratio of 10.2% under the Basel 3 Advanced – Transition rules as of December 31, 2015, and a Supplementary Leverage Ratio (SLR) of 6.6%. Total assets grew to $2.1 trillion, supported by an increase in deposits, reflecting a strong customer base. Despite a slight decline in total revenue, BAC demonstrated a more efficient operational structure, evidenced by an improved efficiency ratio and a significant reduction in noninterest expense, primarily due to lower litigation costs. The company also managed its balance sheet effectively, increasing liquidity sources and maintaining capital ratios well above regulatory minimums. Key business segments like Consumer Banking and Global Banking showed improved net income, while Global Markets and LAS navigated challenging economic environments. The company returned approximately $5.9 billion in capital to shareholders through dividends and share repurchases, signaling a commitment to shareholder returns while navigating a complex regulatory landscape.
Financial Highlights
35 data points| Revenue | $82.97B |
| Interest Expense | $10.55B |
| Net Income | $15.91B |
| EPS (Basic) | $1.38 |
| EPS (Diluted) | $1.31 |
| Shares Outstanding (Basic) | 10.46B |
| Shares Outstanding (Diluted) | 11.24B |
Key Highlights
- 1Net income surged to $15.9 billion in 2015, up from $4.8 billion in 2014, primarily due to a $15.2 billion reduction in litigation expenses.
- 2Total assets increased by $39.8 billion to $2.1 trillion, driven by deposit inflows and deployment into debt securities and loans.
- 3Common Equity Tier 1 (CET1) capital ratio stood at 10.2% under Basel 3 Advanced – Transition rules as of December 31, 2015.
- 4Noninterest expense decreased significantly by $17.9 billion to $57.2 billion, largely due to a reduction in litigation expenses.
- 5The company returned $5.9 billion in capital to shareholders through dividends and share repurchases.
- 6Consumer Banking segment net income increased 5% to $6.7 billion, driven by lower expenses and provisions, partially offset by lower net interest income.
- 7The Federal Reserve did not object to the resubmitted CCAR capital plan on December 10, 2015, indicating improved capital planning processes.