Results
Include a Total of $1.2 Billion in Negative Charges to Revenue ($0.07
per Share) for Market-related Net Interest Income Adjustment, Adoption
of Funding Valuation Adjustments (FVA)(A), and Net Debit Valuation
Adjustments (DVA)
CHARLOTTE, N.C. - Monday, January 26th 2015 [ME NewsWire]
Full-year 2014 Net Income of $4.8 Billion, or $0.36 per Diluted Share, on Revenue of $85.1 Billion(B)
Continued Business Momentum
Originated $15 Billion in Residential Mortgage Loans and Home Equity
Loans in Q4-14, Helping Approximately 41,000 Home Owners Purchase a Home
or Refinance a Mortgage
Issued 1.2 Million New Credit Cards in Q4-14, With 67 Percent Going to Existing Relationship Customers
Delivered Record Asset Management Fees in Global Wealth and Investment
Management of $2.1 Billion; Pretax Margin of 25 Percent in Q4-14
Global Banking Increased Loans by $3.1 Billion, or 1.2 Percent, From Q4-13 to $273 Billion
Reduced Noninterest Expense to $14.2 Billion in Q4-14, Lowest Quarterly Expense Level Since Merrill Lynch Merger
Excluding Litigation, Noninterest Expense Down $1.2 Billion From Q4-13 to $13.8 Billion(C)
Legacy Assets and Servicing Expenses, Excluding Litigation, Down $0.7 Billion, or 38 Percent From Q4-13 to $1.1 Billion(D)
Credit Quality Continued to Improve With Net Charge-offs Down $0.7
Billion, or 44 Percent, From Q4-13 to $0.9 Billion; Net Charge-off Ratio
of 0.40 Percent Is Lowest in a Decade
Record Capital and Liquidity Levels
Estimated Common Equity Tier 1 Ratio Under Basel 3 (Standardized
Approach, Fully Phased-in) 10.0 Percent in Q4-14; Advanced Approaches
9.6 Percent in Q4-14(E)
Estimated Supplementary Leverage Ratios
Above 2018 Required Minimums, With Bank Holding Company at 5.9 Percent
and Primary Bank at 7.0 Percent(F)
Record Global Excess Liquidity Sources of $439 Billion, up $63 Billion from Q4-13; Time-to-required Funding at 39 Months
Tangible Book Value per Share Increased 5 Percent From Q4-13 to $14.43 per Share(G)
Book Value per Share Increased 3 Percent From Q4-13 to $21.32 per Share
(BUSINESS
WIRE)--Bank of America Corporation today reported net income of $3.1
billion, or $0.25 per diluted share, for the fourth quarter of 2014,
compared to $3.4 billion, or $0.29 per diluted share in the year-ago
period. Revenue, net of interest expense, on an FTE basis(B) was $19.0
billion, compared to $21.7 billion in the fourth quarter of 2013.
Results
for the most recent quarter include three adjustments that, in
aggregate, reduced revenue in the fourth quarter of 2014 by $1.2 billion
(pretax) and lowered earnings per share by $0.07. These adjustments
were a $578 million negative market-related net interest income (NII)
adjustment, driven by the acceleration of bond premium amortization on
the company's debt securities portfolio due to lower long-term interest
rates; a one-time transitional charge of $497 million related to the
adoption of funding valuation adjustments on uncollateralized
derivatives in the company's Global Markets business; and $129 million
in net DVA losses related to a tightening of the company's credit
spreads. This compares with $210 million in positive market-related NII
adjustments and $618 million in net DVA losses in the year-ago quarter.
Excluding the impact of FVA in the current period and the net DVA and
market-related NII adjustments in both periods, revenue was $20.2
billion in the fourth quarter of 2014 compared to $22.1 billion in the
year-ago quarter(H). Approximately $720 million of the decline from the
fourth quarter of 2013 was due to lower gains from the sales of debt
securities and equity investment income, and the remainder was
attributable to lower mortgage banking income and lower trading account
profits.
Noninterest expense declined from $17.3 billion in the
fourth quarter of 2013 to $14.2 billion in the fourth quarter of 2014,
the lowest quarterly expense reported by the company since the Merrill
Lynch merger. Credit quality also continued to improve, with the
provision for credit losses declining from $336 million in the fourth
quarter of 2013 to $219 million in the fourth quarter of 2014, while the
charge-off ratio was the lowest in a decade.
2014 Calendar Year Net Income $4.8 Billion
For
the full year, net income was $4.8 billion, or $0.36 per diluted share,
compared to $11.4 billion, or $0.90 per diluted share in 2013. Revenue,
net of interest expense, on an FTE basis(B) was $85.1 billion in 2014,
compared to $89.8 billion in 2013.
Noninterest expense was $75.1
billion, compared to $69.2 billion in 2013. Excluding litigation expense
of $16.4 billion in 2014 and $6.1 billion in 2013, noninterest expense
was $58.7 billion in 2014, down $4.4 billion, or 7 percent, from
2013(C).
"In 2014, we continued to invest in our businesses while
reducing expenses and resolving our most significant litigation
matters," said Chief Executive Officer Brian Moynihan. "Last quarter,
consumer deposits and loan originations were solid; wealth management
client balances grew to $2.5 trillion; we increased lending to
middle-market and large companies; and we retained a leadership position
in investment banking. There's more work and tremendous opportunity
ahead as we improve on the platform we've built to serve our customers
and clients, and we enter 2015 in good shape to manage both the
opportunities and the challenges the markets and economy will offer."
"We
continued our focus on optimizing the balance sheet this quarter,
building capital and managing expenses in a challenging interest rate
and geopolitical environment," said Chief Financial Officer Bruce
Thompson. "Credit quality remained strong, reflecting the improving
economy and our solid risk underwriting."
To view the full release including the tables, please click here
Contacts
Investors May Contact:
Lee McEntire,
Bank of America
1.980.388.6780
Or
Jonathan Blum,
Bank of America (Fixed Income)
1.212.449.3112
Reporters May Contact:
Jerry Dubrowski,
Bank of America
1.980.388.2840
jerome.f.dubrowski@bankofamerica.com
Permalink: http://me-newswire.net/news/13478/en
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