Summary
Bank of America Corporation (BAC) reported its Q2 2010 results with a net income of $3.12 billion, or $0.27 per diluted share. This represents a slight decrease from the previous year's $3.22 billion net income, or $0.33 per diluted share. The company experienced a decline in total revenue, net of interest expense, primarily driven by lower noninterest income, particularly from equity investments, mortgage banking, and trading profits. Despite the revenue decline, net interest income saw an increase due to improved deposit pricing and the impact of new consolidation guidance, though this was partially offset by lower loan balances. The provision for credit losses decreased significantly year-over-year, reflecting improving credit trends in some portfolios, although consumer real estate portfolios still showed stress. Noninterest expense saw a modest increase, impacted by higher personnel costs and merger-related charges. The company highlighted its strong capital position with a Tier 1 common equity ratio of 8.01%. Management also noted the anticipated significant impact of the recently passed Dodd-Frank Act on debit card interchange fees, which is expected to lead to a substantial goodwill impairment charge in the Global Card Services segment in Q3 2010. The company is actively managing its balance sheet and pursuing asset sales to strengthen its capital position.
Financial Highlights
33 data points| Revenue | $29.15B |
| Interest Expense | $6.22B |
| Net Income | $3.12B |
| EPS (Basic) | $0.28 |
| EPS (Diluted) | $0.27 |
| Shares Outstanding (Basic) | 9.96B |
| Shares Outstanding (Diluted) | 10.03B |
Key Highlights
- 1Net income of $3.12 billion for the quarter, a slight decrease from $3.22 billion in Q2 2009.
- 2Diluted EPS of $0.27, down from $0.33 in Q2 2009.
- 3Total revenue, net of interest expense, decreased to $29.15 billion from $32.77 billion in Q2 2009, driven by lower noninterest income.
- 4Net interest income (FTE basis) increased by 11% to $13.2 billion due to improved deposit pricing and consolidation impacts.
- 5Provision for credit losses decreased significantly to $8.1 billion from $13.4 billion in Q2 2009.
- 6Noninterest expense increased slightly to $17.3 billion from $17.0 billion, impacted by personnel costs and merger charges.
- 7Strong capital position maintained with a Tier 1 common equity ratio of 8.01%.