CHARLOTTE, N.C - Monday, October 21st 2013 [ME NewsWire]
Effects of Previously Announced Items
Pretax Gain of $0.8 Billion on Sale of Remaining China Construction Bank Shares Partially Offset by $0.4 Billion in Negative Valuation Adjustments, Resulting in $0.02 Benefit to EPS
Charge Related to Reduction in U.K. Tax Rate of $1.1 Billion, or $0.10 EPS
Continued Business Momentum
Total Consolidated Deposit Balances up 4 Percent From Q3-12 to a Record $1.1 Trillion
Funded $24 Billion in Residential Home Loans and Home Equity Loans in Q3-13
More Than 1 Million New Credit Cards Issued in Q3-13
Global Wealth and Investment Management Reports Record Asset Management Fees of $1.7 Billion; Pretax Margin of 25.5 Percent
Commercial Loan Balances up 19 Percent From Q3-12 to $395 Billion
Bank of America Merrill Lynch Maintained No. 2 Ranking in Global Investment Banking Fees and Was Ranked No. 1 in the Americas in Q3-13B
Expense Reduction Initiatives Remain on Track
Credit Quality Continued to Improve With Net Charge-offs Down 59 Percent From Q3-12C
Capital and Liquidity Remain Strong
Basel 1 Tier 1 Common Capital of $143 Billion, Ratio of 11.08 Percent, up From 10.83 Percent in Prior Quarter
Estimated Basel 3 Tier 1 Common Capital Ratio of 9.94 Percent, up From 9.60 Percent in Prior QuarterD
Estimated Bank Holding Company Supplementary Ratio Improved to Above Proposed 5 Percent MinimumE
Long-term Debt Down $31 Billion From Year-ago Quarter, Driven by Maturities and Liability Management Actions
Parent Company Liquidity Remained Strong With Time-to-required Funding at 35 Months
(BUSINESS WIRE)Bank of America Corporation today reported net income rose to $2.5 billion in the third quarter of 2013 from $340 million in the year-ago quarter. Earnings per diluted share increased to $0.20 from $0.00 in the third quarter of 2012. For the nine months ended September 30, 2013, net income increased to $8.0 billion from $3.5 billion in the same period a year ago.
Relative to the year-ago quarter, the results for the third quarter of 2013 were driven by reduced negative credit valuation adjustments on the company's credit spreads and increases in equity investment income, net interest income and investment and brokerage income. The company also benefited from improved credit quality and lower expenses. These factors were partially offset by lower mortgage banking income and the negative impact from remeasuring certain deferred tax assets due to the U.K. corporate income tax rate reduction enacted in July 2013.
"This quarter, we saw good loan growth, improved credit quality and record deposit balances. Our customers and clients continue to do more business with us," said Chief Executive Officer Brian Moynihan. "The economy and business climate will improve even more quickly as conditions normalize, and we are well positioned to benefit from that."
"We continued to make good progress on our expense initiatives, and we further strengthened our capital and leverage ratios," said Chief Financial Officer Bruce Thompson.
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Investors May Contact:
Anne Walker, Bank of America, 1.646.855.3644
Lee McEntire, Bank of America, 1.980.388.6780
Jonathan Blum, Bank of America (Fixed Income), 1.212.449.3112
Reporters May Contact:
Jerry Dubrowski, Bank of America, 1.980.388.2840