Summary
Bank of America Corporation (BAC) reported a net income of $3.2 billion, or $0.28 per diluted share, for the first quarter of 2010, a decrease from $4.2 billion, or $0.44 per diluted share, in the same period of 2009. Total revenue, net of interest expense, decreased by 11% to $32.3 billion, primarily driven by lower noninterest income, particularly in mortgage banking, card income, and equity investments. Despite the revenue decline, net interest income on a FTE basis increased by 23% to $14.1 billion, reflecting improved loan spreads and the adoption of new accounting guidance on consolidation. The provision for credit losses also decreased significantly, benefiting from an improving economic outlook and lower credit costs. The adoption of new accounting guidance on the consolidation of variable interest entities (VIEs) on January 1, 2010, had a significant impact on the balance sheet, increasing total assets by $100.4 billion and total liabilities by $106.7 billion. This included a $6.2 billion charge to retained earnings. The company's capital ratios remain strong, with Tier 1 common capital at 7.60%, indicating a well-capitalized position. Key strategic highlights include the successful repurchase of all TARP preferred stock, the conversion of Common Equivalent Securities into common stock, and the sale of Columbia Management, which closed on April 30, 2010. The company continues to manage risk proactively, with excess liquidity sources totaling $269 billion at March 31, 2010, and maintains a strong focus on operational and compliance risk management.
Financial Highlights
33 data points| Revenue | $31.97B |
| Interest Expense | $6.13B |
| Net Income | $3.18B |
| EPS (Basic) | $0.28 |
| EPS (Diluted) | $0.28 |
| Shares Outstanding (Basic) | 9.18B |
| Shares Outstanding (Diluted) | 10.01B |
Key Highlights
- 1Net income for Q1 2010 was $3.2 billion, down from $4.2 billion in Q1 2009, with diluted EPS of $0.28 versus $0.44.
- 2Total revenue, net of interest expense (FTE basis), decreased by 11% to $32.3 billion, primarily due to lower noninterest income.
- 3Net interest income (FTE basis) increased 23% to $14.1 billion, driven by improved loan spreads and the adoption of new consolidation guidance.
- 4Provision for credit losses decreased by $3.6 billion to $9.8 billion, reflecting an improving economy.
- 5Adoption of new accounting guidance on VIEs significantly impacted the balance sheet, increasing assets by $100.4 billion and liabilities by $106.7 billion, with a $6.2 billion charge to retained earnings.
- 6The company successfully repurchased all TARP preferred stock and converted Common Equivalent Securities to common stock.
- 7Total excess liquidity sources stood at $269 billion at March 31, 2010, and capital ratios remained strong.