Summary
Bank of America Corporation (BAC) reported its first-quarter 2024 results, showing a net income of $6.7 billion, or $0.76 per diluted share, a decrease from $8.2 billion, or $0.94 per diluted share, in the first quarter of 2023. This decline was attributed to higher noninterest expense, lower revenue, and an increased provision for credit losses. Total assets grew to $3.3 trillion, driven by trading account assets and securities, while total deposits also saw an increase to $1.95 trillion, supported by time deposit growth and seasonal inflows. Key factors impacting profitability included a $700 million charge for the FDIC special assessment related to bank failures in the previous year, which contributed significantly to the rise in noninterest expense. Net interest income experienced a slight decrease year-over-year, impacted by higher deposit and funding costs, though this was partially offset by higher asset yields and Global Markets activity. Fee and commission income saw growth, primarily from investment and brokerage services and investment banking, but this was largely offset by a decrease in market-making activities. From a capital management perspective, Bank of America maintained strong regulatory capital ratios, with its Common Equity Tier 1 (CET1) ratio at 11.9% under the Standardized approach, exceeding regulatory requirements. The company also declared a quarterly common stock dividend of $0.24 per share, signaling continued commitment to returning capital to shareholders. Despite the year-over-year decrease in net income, the bank demonstrated resilience through its diversified business segments and robust capital position.
Financial Highlights
35 data points| Revenue | $25.82B |
| Interest Expense | $22.25B |
| Net Income | $6.67B |
| EPS (Basic) | $0.77 |
| EPS (Diluted) | $0.76 |
| Shares Outstanding (Basic) | 7.97B |
| Shares Outstanding (Diluted) | 8.03B |
Key Highlights
- 1Net income decreased to $6.7 billion ($0.76/share) in Q1 2024 from $8.2 billion ($0.94/share) in Q1 2023, primarily due to higher expenses and provisions.
- 2Total assets increased to $3.3 trillion, while total deposits reached $1.95 trillion, indicating growth in balance sheet size and funding.
- 3Noninterest expense increased by $1.0 billion, largely due to a $700 million FDIC special assessment charge.
- 4Net interest income declined slightly to $14.0 billion due to higher funding costs, partially offset by increased asset yields.
- 5Noninterest income remained relatively stable at $11.8 billion, with growth in investment and brokerage services and investment banking fees offset by lower market-making activities.
- 6Provision for credit losses rose to $1.3 billion, driven by credit card and commercial real estate exposures, despite an improved macroeconomic outlook.
- 7Regulatory capital ratios remained strong, with CET1 at 11.9%, exceeding requirements.