What was the primary driver of the increase in net income?

The primary driver of the increase in net income was higher total revenue, net of interest expense, coupled with a lower provision for credit losses. This was supported by a beneficial interest rate environment and growth in loans and deposits.

How did the company's trading business perform in Q1 2017?

The Global Markets segment reported a significant increase in net income driven by higher sales and trading revenue, particularly in credit and mortgage products, and increased investment banking fees. Trading account profits increased $669 million due to stronger performance across credit products and equities.

What is the company's capital management strategy as indicated in this report?

Bank of America's capital management strategy includes returning capital to shareholders through common stock repurchases and dividends. During the quarter, they repurchased $2.7 billion of common stock and increased their quarterly dividend. They are also actively managing their capital position to meet regulatory requirements, including Basel 3.

How are the company's loan portfolios performing in terms of credit quality?

Credit quality generally improved. Consumer real estate loans showed better quality with declining past-due balances. Nonperforming commercial loans and leases decreased slightly. The provision for credit losses decreased overall, largely due to improvements in energy sector exposures within the commercial portfolio.

BANK OF AMERICA CORP /DE/ 10-Q Quarterly Report Q1 FY2017

Summary

Bank of America Corporation (BAC) reported a strong first quarter for 2017, with net income increasing significantly to $4.9 billion, or $0.41 per diluted share, up from $3.5 billion, or $0.28 per diluted share, in the same period of 2016. This improvement was primarily driven by higher revenues across most business segments and a lower provision for credit losses. Total revenue, net of interest expense, rose to $22.2 billion, supported by growth in net interest income due to a rising interest rate environment and increased loan and deposit volumes, as well as robust performance in investment banking and trading activities within Global Banking and Global Markets. The company demonstrated solid capital management, repurchasing approximately $2.7 billion of common stock during the quarter and increasing its quarterly common stock dividend. Asset quality remained stable, with nonperforming loans as a percentage of total loans decreasing. Overall, the report indicates a healthy financial performance and a positive economic outlook for Bank of America in early 2017, with improvements across key profitability and efficiency metrics.

Financial Highlights

34 data points

Beta

Revenue

$22.25B

Net Income

$5.34B

0.2% Net Margin

EPS (Diluted)

$0.45

Total Assets

$2.25T

Cash & Equivalents

$168.03B

Free Cash Flow

-$12.99B

Financial Statements

Beta

Revenue	$22.25B
Interest Expense	$2.65B
Net Income	$5.34B
EPS (Basic)	$0.48
EPS (Diluted)	$0.45
Shares Outstanding (Basic)	10.10B
Shares Outstanding (Diluted)	10.92B

Key Highlights

1Net income increased to $4.9 billion ($0.41 per diluted share) in Q1 2017 from $3.5 billion ($0.28 per diluted share) in Q1 2016.
2Total revenue, net of interest expense, grew to $22.2 billion in Q1 2017 from $20.8 billion in Q1 2016.
3Net interest income rose by $573 million to $11.1 billion, benefiting from higher interest rates and loan/deposit growth.
4Noninterest income increased by $885 million to $11.2 billion, driven by strong performance in investment banking income and trading account profits.
5Provision for credit losses decreased to $835 million from $997 million, reflecting improved credit quality, particularly in energy exposures.
6Noninterest expense remained stable at $14.8 billion, with operating efficiencies offsetting higher personnel and FDIC expenses.
7The company repurchased $2.7 billion of common stock and continued to increase its common stock dividend.

BANK OF AMERICA CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2017

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions