Record Tier 1 Common Capital Ratio of 11.24 Percent Under Basel 1, up 46 Basis Points Since March 31, 2012
Tier 1 Common Capital Ratio Under Basel 3 Estimated at 8.10 Percent at June 30, 20121
Long-term Debt Down $53 Billion From Q1-12, Driven by Maturities and Liability Management Actions; Time-to-Required Funding Improved to Record 37 Months
Investment Bank Ranked No. 2 in Global Net Investment Banking Fees for First-half 2012
Global Wealth and Investment Management Reported Record Asset Management Fees of $1.6 Billion, Driven by Market Gains and Solid Long-term Assets Under Management Flows
First-lien Mortgage Originations up 18 Percent From Q1-12
Consumer and Business Banking Average Deposit Balances up $10.3 Billion, or 2.2 Percent From Q1-12
Provision for Credit Losses Declined to Lowest Level Since Q1-07 as Credit Quality Continues to Improve
Phase 2 of New BAC Expected to Yield Cost Annualized Savings of $3 Billion by Mid-2015, Total New BAC Annualized Cost Savings Now Projected to Be $8 Billion
(BUSINESS WIRE)-- Bank of America Corporation today reported net income of $2.5 billion, or $0.19 per diluted share, for the second quarter of 2012, compared to a net loss of $8.8 billion, or $0.90 per diluted share in the second quarter of 2011. The year-ago quarter included a total of $18.2 billion in pretax charges for certain mortgage-related items and other selected adjustments, including provisions for representations and warranties and goodwill impairment.2
Relative to the same quarter a year ago, the results for the second quarter of 2012 reflect higher mortgage banking income, driven largely by lower provisions for representations and warranties, the absence of the goodwill impairment charge and improved credit quality across most major portfolios. In addition, the company had solid contributions from the wealth management and corporate and commercial banking businesses. This was partially offset by lower net interest income from the continued low-rate environment and lower loan levels.
“In a challenging global economy, we still see opportunities to do more with our customers and clients. Lending to commercial businesses increased for the sixth straight quarter -- with small business lending and commitments up 23 percent in a year -- and consumer credit is in the best shape in years,” said Brian Moynihan, chief executive officer. “This quarter we surpassed 10 million mobile banking customers, up 34 percent in a year. With about 45,000 new mobile customers a week, we are adapting to meet customer needs and to do more with them.”
“Once again, we had strong capital generation this quarter through a combination of earnings growth and a reduction in risk-weighted assets,” said Chief Financial Officer Bruce Thompson. “In one year, our Tier 1 common capital ratios have gone from being the lowest of the major U.S. banks to among the highest, and we've maintained our strong liquidity levels even as we reduced our long-term debt by $125 billion.”
As of June 30, 2012, the company's Basel 3 Tier 1 common capital ratio on a fully phased-in basis was estimated at 8.10 percent. This compares with the company's previous guidance of achieving a Basel 3 Tier 1 common capital ratio of more than 7.50 percent on a fully phased-in basis by year-end 2012.
“The fact that we exceeded our previous guidance for Basel 3 six months ahead of schedule points to the significant progress we have made this year to build capital, reduce risk-weighted assets and position the company for long-term growth,” Thompson added.
1
The Basel Tier 1 common capital ratio is based on certain assumptions with respect to the final Basel 3 rules and is expected to evolve over time, as the Basel 3 rules evolve and the Company's businesses change. For more information, see Capital and Liquidity section of this press release on page 15.
2
Refer to pages 15-16 of the company's second-quarter 2011 earnings press release dated July 19, 2011 for table indicating mortgage-related items and other selected adjustments.
To view the full report and tables please click here.
Contacts
Investors May Contact:
Kevin Stitt, Bank of America, 1.980.386.5667
Lee McEntire, Bank of America, 1.980.388.6780
Reporters May Contact:
Jerry Dubrowski, Bank of America, 1.980.388.2840
jerome.f.dubrowski@bankofamerica.com
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