Summary
Bank of America Corporation's (BAC) 2021 10-K filing indicates a strong financial recovery, with net income significantly increasing to $32.0 billion from $17.9 billion in 2020. This improvement was driven by a substantial benefit from the provision for credit losses, reflecting an improved macroeconomic outlook, and higher total revenue, which grew to $89.1 billion from $85.5 billion. The company's balance sheet also strengthened, with total assets reaching $3.2 trillion, up from $2.8 trillion in the prior year, largely due to increased debt securities funded by deposit growth. Key business segments showed robust performance, with Global Banking and Global Wealth & Investment Management (GWIM) reporting significant increases in net income. Consumer Banking also saw growth, aided by improved credit quality. The company continues to manage its capital effectively, repurchasing $25.1 billion in common stock during 2021 and increasing its quarterly common stock dividend. While noninterest expense increased, primarily due to higher compensation and transactional costs, the bank's overall financial health appears solid, supported by a well-managed risk framework and strong capital ratios.
Financial Highlights
35 data points| Revenue | $89.11B |
| Interest Expense | $4.74B |
| Net Income | $31.98B |
| EPS (Basic) | $3.60 |
| EPS (Diluted) | $3.57 |
| Shares Outstanding (Basic) | 8.49B |
| Shares Outstanding (Diluted) | 8.56B |
Key Highlights
- 1Net income surged to $32.0 billion in 2021, a significant increase from $17.9 billion in 2020, driven by improved provision for credit losses and higher revenue.
- 2Total revenue increased to $89.1 billion in 2021, up from $85.5 billion in 2020, reflecting growth across key segments.
- 3Total assets grew to $3.2 trillion at the end of 2021, an increase of $350 billion from the prior year, primarily due to higher debt securities and deposit growth.
- 4The company returned $25.1 billion to shareholders through common stock repurchases and paid $7.6 billion in dividends in 2021.
- 5Provision for credit losses improved significantly, shifting to a benefit of $4.6 billion in 2021 from an expense of $11.3 billion in 2020, due to a better macroeconomic outlook.
- 6Strong performance in Global Banking and Global Wealth & Investment Management contributed to higher net income in those segments.
- 7Capital ratios remain strong, with Common Equity Tier 1 capital ratio at 10.6% under the Standardized approach as of December 31, 2021, well above regulatory minimums.