10-KPeriod: FY2019

BANK OF AMERICA CORP /DE/ Annual Report, Year Ended Dec 31, 2019

Filed February 19, 2020For Securities:BACBAC-PBBAC-PKBAC-PLBAC-PMBAC-PNBAC-PSBML-PJBAC-PEBAC-PPBAC-PQBACRPBML-PGBML-PHBML-PLBAC-POMER-PK

Summary

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 trillion 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 billion 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.

Financial Highlights

35 data points
Beta

Revenue

$91.24B

Net Income

$27.43B

30.1% Net Margin

EPS (Diluted)

$2.75

Total Assets

$2.43T

Cash & Equivalents

$161.56B

Free Cash Flow

$61.78B

Financial Statements
Beta
Revenue$91.24B
Interest Expense$22.34B
Net Income$27.43B
EPS (Basic)$2.77
EPS (Diluted)$2.75
Shares Outstanding (Basic)9.39B
Shares Outstanding (Diluted)9.44B

Key Highlights

  • 1Total assets reached $2.4 trillion by the end of 2019, an increase from $2.35 trillion in 2018.
  • 2Net income for 2019 was $27.4 billion, compared to $28.1 billion in 2018, with diluted EPS at $2.75 and $2.61 respectively.
  • 3Net interest income increased to $48.9 billion in 2019 from $48.2 billion in 2018, driven by loan and deposit growth.
  • 4Noninterest income decreased slightly to $42.4 billion in 2019 from $42.9 billion in 2018, impacted by lower service charges and investment/brokerage services.
  • 5Noninterest 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.
  • 6Common 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.
  • 7The company repurchased $28.1 billion of common stock during 2019 as part of its capital return strategy.

Frequently Asked Questions

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.

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.

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.

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'.