Bank of America Reports Q4-15 Net Income of $3.3B, EPS of $0.28 

Full-Year 2015 Net Income of $15.9B, EPS of $1.31

Financial Highlights

• Revenue, net of interest expense, (FTE basis) up 4% to $19.8B(A)

• Net interest income (NII) (FTE basis) up 2% to $10.0B(A)

– Excluding market-related NII and other adjustments(A), NII was $10.5B, compared to $10.3B in Q3-15 and $10.4B in Q4-14

• Noninterest income up 7% to $9.7B

• Provision for credit losses $0.8B, compared to $0.8B in Q3-15 and $0.2B in Q4-14

• Noninterest expense declined 2% to $13.9B; excluding litigation, noninterest expense declined 3% to $13.4B(B)

• Net income up 9% to $3.3B; earnings per diluted share $0.28, compared to $0.25

Previously Disclosed Q4-15 Items

• ($0.03) per share for reduction to NII for certain trust preferred securities

• ($0.03) per share for negative impact of U.K. tax law changes

Balance Sheet, Capital and Liquidity

• Common equity tier 1 capital (transition) of $163.0B; Common equity tier 1 capital (fully phased-in) of $154.1B(C)

• Global Excess Liquidity Sources increased $65B to record $504B; time to required funding at 39 months(D)

• Total deposit balances up $78B to $1.2T

• Return on average assets 0.61%; return on average common equity 5.1%; return on average tangible common equity 7.3%(E)

• Tangible book value per share(F) increased 8% to $15.62; book value per share increased 6% to $22.54

• Returned $4.5B in capital to shareholders in 2015 through common stock repurchases and dividends

Business Highlights

Consumer Banking

• Loans up $12B, deposits up $48B2

• Brokerage assets up 8%

• Total mortgage production up 13%

• Total U.S. credit card spending up 5%

Global Wealth and Investment Management

• Total client balances of nearly $2.5T

• Long-term assets under management flows of $7B in Q4-15

• Loans up $12B, deposits up $16B2
Global Banking
• Loans up $37B, deposits up $16B2

• No. 3 in Global Investment Banking fees(G)

• Participated in 8 of top 10 debt deals and 7 of top 10 equity deals(G)
Global Markets
• Excluding net DVA, sales and trading revenue up 11%(H)

– Fixed income up 20%(H)

– Equities down 3%(H)
Legacy Assets and Servicing
• Noninterest expense down 16% to $1.1B; noninterest expense, excluding litigation, down 28% to $795MM(I)

• Number of 60+ days delinquent first mortgage loans down 46% to 103,000 units

CEO Commentary

Highest Annual Net Income in Nearly a Decade

“The 2015 results were our highest earnings in nearly a decade, reflecting the work we’ve done to develop a straightforward operating model focused on responsible growth and doing more business with each customer and client. We saw solid customer activity in loan growth, deposits, and wealth management asset flows, and we returned more capital to our shareholders. As we build on this progress, we will continue to invest in the future and manage expenses.”

– Brian Moynihan, Chief Executive Officer

CFO Commentary

“Our results this quarter reflect our ongoing efforts to improve operating leverage while continuing to invest in our business. We increased net interest income, managed expenses tightly, and returned $1.3 billion in capital to our shareholders this quarter through common stock repurchases and dividends.”

– Paul Donofrio, Chief Financial Officer

Source: Bank of America

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