Summary
Bank of America Corporation (BAC) reported total assets of $2.2 trillion and net income of $17.9 billion for the fiscal year ended December 30, 2016. The company experienced a 4% increase in net interest income to $41.1 billion, primarily driven by growth in commercial loans and the impact of higher short-term interest rates. Noninterest income saw a decrease of $1.4 billion, largely due to lower investment and brokerage services income and a decline in investment banking fees, partially offset by stronger trading account profits. Noninterest expense decreased by $2.8 billion, reflecting ongoing cost management efforts, including reduced personnel and professional fees. The provision for credit losses increased by $436 million, attributed to a slower pace of credit quality improvement in the consumer portfolio and an increase in energy sector reserves. The company continued its capital return program, repurchasing approximately $5.1 billion of common stock and increasing its quarterly dividend. The financial institution is navigating a complex regulatory environment with ongoing implementation of Basel III and Dodd-Frank Act requirements.
Financial Highlights
34 data points| Revenue | $83.70B |
| Interest Expense | $9.96B |
| Net Income | $17.82B |
| EPS (Basic) | $1.57 |
| EPS (Diluted) | $1.49 |
| Shares Outstanding (Basic) | 10.28B |
| Shares Outstanding (Diluted) | 11.05B |
Key Highlights
- 1Net income increased to $17.9 billion ($1.50 per diluted share) from $15.8 billion ($1.31 per diluted share) in 2015, driven by higher net interest income and lower noninterest expense.
- 2Net interest income rose by $2.1 billion to $41.1 billion, aided by commercial loan growth, higher interest rates, and increased debt securities balances.
- 3Noninterest income decreased by $1.4 billion to $42.6 billion, impacted by lower investment and brokerage services, and investment banking fees, though trading account profits increased.
- 4Noninterest expense decreased by $2.8 billion to $55.0 billion, due to continued cost management, lower personnel expenses, and reduced legal fees.
- 5Provision for credit losses increased by $436 million to $3.6 billion, reflecting a slower pace of credit quality improvement in the consumer portfolio and increased energy sector reserves.
- 6The company repurchased approximately $5.1 billion of common stock during 2016 and announced plans to repurchase an additional $1.8 billion in the first half of 2017.
- 7Bank of America is subject to extensive and evolving regulatory frameworks, including Basel III capital and liquidity rules, and the Dodd-Frank Act, which impact capital planning, stress testing, and resolution planning.