Bank of America Reports Q1 Results
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.