01—Abstract
Summary
Summary of the 10-K filed February 19, 2020. Cited figures are marked; the original filing is the authoritative source.
Bank of America Corporation (BAC) reported its 2019 financial results in this 10-K filing.
The company is a diversified financial institution, providing a full range of banking, investing, asset management, and other financial and risk management products and services. At the end of 2019, BAC had total assets of $2.4 trilliona and employed approximately 208,000 people. The report details performance across its four key business segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.
Financially, BAC reported net income of $27.4 billionb for 2019, a slight decrease from $28.1 billion in 2018, primarily due to an impairment charge related to a merchant services joint venture and increased noninterest expenses. Net interest income saw a modest increase, driven by loan and deposit growth, while noninterest income decreased slightly, impacted by lower service charges and investment/brokerage services, partially offset by higher investment banking fees. The company maintained robust capital ratios, demonstrating strong financial health and compliance with regulatory requirements.
02—Key points
Key Highlights
- Total assets reached $2.4 trillion by the end of 2019, an increase from $2.35 trillion in 2018.
- Net income for 2019 was $27.4 billion, compared to $28.1 billion in 2018, with diluted EPS at $2.75 and $2.61 respectively.
- Net interest income increased to $48.9 billion in 2019 from $48.2 billion in 2018, driven by loan and deposit growth.
- Noninterest income decreased slightly to $42.4 billion in 2019 from $42.9 billion in 2018, impacted by lower service charges and investment/brokerage services.
- Noninterest expense increased to $54.9 billion in 2019 from $53.2 billion in 2018, largely due to a $2.1 billion impairment charge related to the merchant services joint venture.
- Common equity tier 1 capital ratio remained strong at 11.2% under the Standardized Approach and 11.5% under the Advanced Approach at December 31, 2019.
- The company repurchased $28.1 billion of common stock during 2019 as part of its capital return strategy.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2019filed February 19, 2020Financial Statements
FY2019 against FY2018
| Line item | FY2019FY2018 | Change |
|---|---|---|
| Revenue | $91.24B$91.02B | +0.2% |
| Interest Expense | $22.34B$18.61B | +20.1% |
| Net Income | $27.43B$28.15B | −2.5% |
| EPS (Basic) | $2.77$2.64 | +4.9% |
| EPS (Diluted) | $2.75$2.61 | +5.4% |
| Shares Outstanding (Basic) | 9.39B10.10B | −7.0% |
| Shares Outstanding (Diluted) | 9.44B10.24B | −7.8% |
05—Questions
Frequently Asked Questions
What were Bank of America's key financial results for 2019?
For 2019, Bank of America reported net income of $27.4 billion, or $2.75 per diluted share. Net interest income increased to $48.9 billion, while noninterest income saw a slight decrease to $42.4 billion. Total assets grew to $2.4 trillion.
What factors led to the decrease in net income in 2019 compared to 2018?
The decrease in net income was primarily driven by a $2.1 billion pretax impairment charge related to the notice of termination of the merchant services joint venture. Higher noninterest expense due to increased investments in the business and higher litigation expenses also contributed, partially offset by higher net interest income and efficiency savings.
How did Bank of America manage its capital in 2019?
Bank of America maintained strong capital levels, with a Common Equity Tier 1 capital ratio of 11.2% under the Standardized Approach and 11.5% under the Advanced Approach as of December 31, 2019. The company also returned capital to shareholders by repurchasing $28.1 billion of common stock during 2019.
What are the main business segments of Bank of America?
Bank of America operates through four main business segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The remaining operations are recorded in 'All Other'.
06—Continue