Bank of America announced Q2 financial results that were stronger than expected.
Adjusted earnings per share came in at $US0.41 per share, which was much stronger than the $US0.29 expected.
One big adjustment during the quarter was litigation costs which slashed $US0.22 from the bottom line.
“The economy continues to strengthen, and our customers and clients are doing more business with us,” said CEO Brian Moynihan. “Among other positive indicators, consumers are spending more, brokerage assets are up by double digits and our corporate clients are increasingly turning to us to help finance business expansion and merger activity. We are well positioned for further progress.”
Here are some bullets from BAC’s earnings announcement:
• Total Period-end Deposit Balances up $US54 Billion, or 5 Per cent, From Q2-13 to a Record $US1.13 Trillion
• Funding of $US13.7 Billion in Residential Home Loans and Home Equity Loans in Q2-14 Helped Nearly 43,000 Homeowners Purchase a Home or Refinance a Mortgage
• More Than 1.1 Million New Credit Cards Issued in Q2-14, With 65 Per cent Going to Existing Customers
• Global Wealth and Investment Management Reports Record Revenue of $US4.6 Billion and Record Total Client Balances of $US2.47 Trillion
• Global Banking Average Loan Balances up 6 Per cent From Q2-13 to $US271 Billion
• Bank of America Merrill Lynch Maintained a Leadership Position in Investment Banking with Total Firmwide Fees of $US1.6 Billion and Record Equity Issuance Fees in Q2-14, Excluding Self-led Deals
• FICC Sales and Trading Revenue, Excluding Net DVA, up 5 Per cent From Q2-13(B)
• Noninterest Expense, Excluding Litigation, Down 6 Per cent From Q2-13 to $US14.6 Billion(C)
• Credit Quality Continued to Improve With Net Charge-offs Down 49 Per cent From Q2-13 to $US1.1 Billion; Net Charge-off Ratio of 0.48 Per cent Is Lowest in a Decade