Summary
Bank of America Corporation (BAC) reported strong financial results for the third quarter of 2021, with net income applicable to common shareholders of $7.26 billion, an increase from $4.44 billion in the same period last year. Diluted earnings per share were $0.85, up from $0.51 year-over-year. Total revenue grew to $22.77 billion, driven by solid performance across all business segments, particularly in Global Wealth & Investment Management and Global Banking, supported by higher investment and brokerage services and investment banking fees, respectively. The company's capital position remains robust, with a Common Equity Tier 1 (CET1) capital ratio of 11.1% under the Standardized approach, exceeding regulatory requirements. Bank of America also announced the renewal of its $25 billion common stock repurchase program and declared a quarterly dividend of $0.21 per share, demonstrating a commitment to returning capital to shareholders. The provision for credit losses benefited the company, reflecting improved credit quality and a more favorable macroeconomic outlook, with a significant decrease in the provision compared to the prior year.
Financial Highlights
35 data points| Revenue | $22.77B |
| Interest Expense | $1.24B |
| Net Income | $7.69B |
| EPS (Basic) | $0.86 |
| EPS (Diluted) | $0.85 |
| Shares Outstanding (Basic) | 8.43B |
| Shares Outstanding (Diluted) | 8.49B |
Key Highlights
- 1Net income applicable to common shareholders increased significantly year-over-year to $7.26 billion ($0.85 per diluted share) from $4.44 billion ($0.51 per diluted share).
- 2Total revenue increased by 12% year-over-year to $22.77 billion, driven by growth in noninterest income across key segments.
- 3Provision for credit losses improved substantially, turning into a benefit of $624 million from a provision of $1.39 billion in the prior year period, reflecting better credit quality and economic outlook.
- 4Total assets grew to $3.09 trillion, primarily due to increased deposits and deployment of cash into debt securities.
- 5The CET1 capital ratio remained strong at 11.1% (Standardized approach), well above regulatory minimums.
- 6Bank of America renewed its $25 billion common stock repurchase program and declared a quarterly dividend of $0.21 per share.
- 7Global Wealth & Investment Management and Global Banking segments showed strong revenue growth, with noninterest income from investment and brokerage services and investment banking fees increasing notably.