Bank of America missed on revenue but topped on earnings
BAC posted a 46.75% increase in 4Q16 earnings helped by higher revenue, expense management and creation of operating leverage. Net income for the quarter rose 46.75% to $4.33Bil or $0.40 per share from $2.95Bil or $0.27 per share a year ago. Total revenue grew 2.51% to $19.99Bil from $19.5Bil.
EPS of 40 cents on revenue of $19.99 billion.
Trading revenue climbed 11% to $2.91 billion.
Expenses fell 6.1% to $13.16 billion.
Estimates were:31% EPS jump to 38 cents on a 7% revenue increase to $20.851 billion.
4Q16 return on average assets was 0.85%, return on average common equity was 7% and return on average tangible common equity was 9.9%. The company’s overall credit quality remained strong, with improvements in both consumer and commercial portfolios.
Total loans and leases for 4Q16-end increased to $906.7Bil from $897Bil in the year ago quarter. Total assets rose marginally to $2.18 trillion from $2.14 trillion and total deposits grew to $1.26 trillion from $1.19 trillion. Also, $BAC repurchased $5.1Bil in common stock and paid $2.6Bil in common stock dividends in 2016.Buyback:
Planned first half repurchase raised to $4.3 billion from $2.5 billion.
In 2016 BAC's biggest earnings business, Consumer Banking, continued its strong performance and produced more than $7Bil in after tax earnings, growing 8%. The Global Wealth and Investment Management business improved earnings 8%, earning $2.8Bil, while Global Banking business generated $5.7Bil of earnings. Global Markets grew to $3.8Bil.
BAC's 4Q16 total net charge-offs of $880MM was down $264MM YoverY, while provision expense of $774MM fell $36MM from the year ago quarter.
$BAC said its active mobile users were up 16% YoverY in 2016 and the company grew active mobile users more than it did in 2015. The company added that mobile deposit transactions are now 19% of all deposit transactions.Reaction:
Bank of America Corp NYSE: BAC Jan 13, 11:09 AM EST 23.11 +0.19 +0.83%Live From The Pit