BANK OF AMERICA CORP /DE/ Quarterly Report for Q3 Ended Sep 30, 2019

Summary

Bank of America Corporation (BAC) reported solid financial results for the third quarter of 2019, with total revenue remaining stable year-over-year at $22.8 billion. Net income, however, saw a decline to $5.8 billion from $7.2 billion in the prior year's quarter, primarily due to a significant $2.1 billion pretax impairment charge related to the termination of its merchant services joint venture. Despite the impairment charge, core banking operations showed resilience. Net interest income increased slightly to $12.2 billion, driven by loan and deposit growth. Noninterest income remained stable, with increases in investment banking fees offsetting decreases in other areas. The company continued to return capital to shareholders, repurchasing $7.6 billion of common stock during the quarter and declaring a $0.18 per share dividend. Capital ratios remained strong, well above regulatory minimums.

Key Highlights

• 1Total revenue for Q3 2019 was $22.8 billion, a slight increase from $22.7 billion in Q3 2018.
• 2Net income decreased to $5.8 billion from $7.2 billion in the prior year quarter, largely due to a $2.1 billion impairment charge on the merchant services joint venture.
• 3Net interest income increased by 1.0% year-over-year to $12.2 billion, driven by loan and deposit growth.
• 4Provision for credit losses increased to $779 million from $716 million in the prior year quarter.
• 5Noninterest expense increased significantly to $15.2 billion from $13.0 billion, primarily due to the merchant services joint venture impairment charge.
• 6The company repurchased $7.6 billion of common stock in Q3 2019 and maintained its quarterly dividend of $0.18 per share.
• 7Capital ratios remained strong, with Common Equity Tier 1 (CET1) capital ratio at 11.4% under the Standardized Approach.

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