Summary
Bank of America Corporation reported strong performance for the second quarter and first half of 2013, with net income increasing significantly compared to the prior year periods. Net income for the second quarter was $4.0 billion, or $0.32 per diluted share, up from $2.5 billion, or $0.19 per diluted share, in the second quarter of 2012. For the first six months of 2013, net income was $5.5 billion, or $0.42 per diluted share, compared to $3.1 billion, or $0.22 per diluted share, in the same period of 2012. The bank has been actively managing its balance sheet by reducing long-term debt, and has also executed on its capital plan, repurchasing $1.0 billion of common stock and redeeming $5.5 billion in preferred stock during the quarter. The company's results reflect continued efforts to stabilize revenue, decrease costs, and improve credit quality. Key drivers for the improved performance include strong investment banking income, higher trading account profits (excluding DVA), and robust growth in investment and brokerage services, driven by higher market levels and asset flows. Furthermore, the provision for credit losses decreased substantially, primarily in the home loans portfolio, due to improved portfolio trends and increased home prices. Noninterest expense also decreased, largely driven by lower litigation and professional fees, as Bank of America continues to benefit from its "Project New BAC" cost savings initiative.
Financial Highlights
35 data points| Revenue | $22.73B |
| Interest Expense | $3.28B |
| Net Income | $4.01B |
| EPS (Basic) | $0.33 |
| EPS (Diluted) | $0.32 |
| Shares Outstanding (Basic) | 10.78B |
| Shares Outstanding (Diluted) | 11.52B |
Key Highlights
- 1Net income for Q2 2013 was $4.0 billion ($0.32/share), up from $2.5 billion ($0.19/share) in Q2 2012.
- 2Six-month net income for 2013 was $5.5 billion ($0.42/share), up from $3.1 billion ($0.22/share) in 2012.
- 3Net interest income (FTE basis) increased year-over-year for both the quarter and the six-month period, driven by debt reductions and improved trading-related net interest income.
- 4Noninterest income saw growth in Investment and brokerage services and Investment banking income, while Mortgage banking income declined.
- 5Provision for credit losses decreased significantly, reflecting improved credit quality, particularly in the home loans portfolio.
- 6Noninterest expense decreased year-over-year for both periods, attributed to lower litigation and personnel costs, and cost savings from "Project New BAC."
- 7The company repurchased $1.0 billion of common stock and redeemed $5.5 billion of preferred stock as part of its capital plan.