Bank of America Reports Q1 Results

-By Sam B | [email protected]

APRIL 18 2017 - Bank of America reported Q1 results today and showed a profit of $4.9 billion or EPS of 41 cents a share. Measured against the prior year, Revenue rose 7% and expenses remained flat; EPS increased 46% percent compared to the prior year; provisions declined 16% to $835 million and the net charge off ratio declined to 0.42% from 0.48%; the net charge off ratio represents loan losses divided by the average loan balance. The stock moved modestly higher in pre-market trading but has remained flat over the course of the trading day.

The company separates its results into four segments, which include: Consumer Banking, Global Wealth and Investment Management, Global Banking, and Global Markets. Consumer banking net income rose 7% to $1.9 billion compared to the prior year; Global Wealth Management saw revenue rise 4% to $770 million; Global Banking had record net income of $1.7 billion as net income increased 58% over the prior year—the strong results reflected the improvements in BAC's energy portfolio—provisions declined to $17 million from $553 million; Global Markets recorded net income of $1.3 billion, which was up 33% over the prior year.

Total assets increased to $2.247 trillion from $2.187 trillion at December 31, 2016. Tangible book value per share increased to $17.23 from $16.95 a share at December 31, 2016. BAC stock is still up 3% on the year, which is an outperformance of the KBW banking index, which is down 3%. However, BAC was up over 15% in early March. Banks began tumbling in March as enthusiasm over President Donald Trump's ability to reduce regulation tempered. Many bank stocks are now down on the year.

Join the best Message Board on the internet to rate and comment on this article and others

comments powered by Disqus