Summary
Bank of America Corporation (BAC) reported robust performance for the fiscal year ending December 30, 2018. Driven by an increase in net interest income and noninterest income, coupled with a reduction in noninterest expense, the company saw a significant rise in net income to $28.1 billion from $18.2 billion in the prior year. This improvement was also bolstered by a lower effective tax rate resulting from the Tax Cuts and Jobs Act of 2017. The company's balance sheet expanded, with total assets reaching $2.4 trillion, supported by strong deposit growth. Capital management remained a focus, with substantial common stock repurchases and dividend payments returning capital to shareholders. Looking ahead, Bank of America highlighted ongoing efforts to adapt to evolving regulatory landscapes, including the UK's exit from the EU and the transition away from LIBOR. The company's diversified business segments—Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets—all contributed to the overall positive financial results, demonstrating resilience and strategic execution across its operations. Investors can note the company's commitment to shareholder returns through its capital return program and its solid capital and liquidity positions.
Financial Highlights
35 data points| Revenue | $91.02B |
| Interest Expense | $18.61B |
| Net Income | $28.15B |
| EPS (Basic) | $2.64 |
| EPS (Diluted) | $2.61 |
| Shares Outstanding (Basic) | 10.10B |
| Shares Outstanding (Diluted) | 10.24B |
Key Highlights
- 1Net income increased to $28.1 billion, or $2.61 per diluted share, significantly up from $18.2 billion, or $1.56 per diluted share, in 2017, driven by higher revenues and lower expenses, notably the positive impact of the Tax Cuts and Jobs Act.
- 2Total revenue increased to $91.2 billion, up from $87.4 billion in 2017, reflecting growth in both net interest income and noninterest income.
- 3Noninterest expense decreased to $53.4 billion from $54.7 billion in 2017, largely due to lower litigation and FDIC expenses.
- 4Total assets grew to $2.4 trillion as of December 31, 2018, up from $2.3 trillion in the prior year, primarily driven by increased securities purchased under resale agreements and higher cash and cash equivalents due to deposit growth.
- 5Common shareholders' equity decreased slightly to $265.3 billion from $267.1 billion, primarily due to returns of capital to shareholders through dividends and share repurchases.
- 6The company repurchased $20.1 billion of common stock during 2018 and announced plans for an additional $2.5 billion in repurchases.
- 7Key capital ratios, such as Common Equity Tier 1 capital ratio, remained strong and well above regulatory minimums.