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Bank Of America Reports Fourth-quarter 2013 Net Income Of $3.4 Billion, Or $0.29 Per Diluted Share, On Revenue Of $21.7 Billion(A)

Bank of America Corporation today reported net income of $3.4 billion, or $0.29 per diluted share, for the fourth quarter of 2013, compared to $732 million, or $0.03 per diluted share in the year-ago period. Revenue, net of interest expense, on an FTE basis A rose 15 percent from the fourth quarter of 2012 to $21.7 billion.

For the year ended December 31, 2013, net income increased to $11.4 billion, or $0.90 per diluted share, from $4.2 billion, or $0.25 per diluted share, in 2012. Revenue, net of interest expense, on an FTE basis A rose 7 percent to $89.8 billion.

"We are pleased to see the core businesses continue to perform well, serving our customers and clients," said Chief Executive Officer Brian Moynihan. "While work remains on past issues, our two hundred forty thousand teammates continue to do a great job winning in the marketplace."

“We enter this year with one of the strongest balance sheets in our company’s history,” said Chief Financial Officer Bruce Thompson. “Capital and liquidity are at record levels, credit losses are at historic lows, our cost savings initiatives are on track and yielding significant savings, and our businesses are seeing good momentum.”

Selected Financial Highlights
  Three Months Ended   Year Ended
(Dollars in millions, except per share data)

December 31 2013
  December 312012   December 31 2013   December 312012
Net interest income, FTE basis 1 $ 10,999   $ 10,555 $ 43,124   $ 41,557
Noninterest income 10,702 8,336 46,677 42,678
Total revenue, net of interest expense, FTE basis 21,701 18,891 89,801 84,235
Total revenue, net of interest expense, FTE basis, excluding DVA and FVO 2 22,319 19,610 90,958 91,819
Provision for credit losses 336 2,204 3,556 8,169
Noninterest expense 17,307 18,360 69,214 72,093
Net income $ 3,439 $ 732 $ 11,431 $ 4,188
Diluted earnings per common share $ 0.29     $ 0.03     $ 0.90     $ 0.25

1 Fully taxable-equivalent (FTE) basis is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 23-25 of this press release. Net interest income on a GAAP basis was $10.8 billion and $10.3 billion for the three months ended December 31, 2013 and 2012, and $42.3 billion and $40.7 billion for the years ended December 31, 2013 and 2012. Total revenue, net of interest expense, on a GAAP basis was $21.5 billion and $18.7 billion for the three months ended December 31, 2013 and 2012, and $88.9 billion and $83.3 billion for the years ended December 31, 2013 and 2012.

2 Total revenue, net of interest expense, on an FTE basis excluding DVA and FVO adjustments is a non-GAAP financial measure. DVA losses were $201 million and $277 million for the three months ended December 31, 2013 and 2012, and $508 million and $2.5 billion for the years ended December 31, 2013 and 2012. Valuation losses related to FVO were $417 million and $442 million for the three months ended December 31, 2013 and 2012, and $649 million and $5.1 billion for the years ended December 31, 2013 and 2012.Revenue, net of interest expense, on an FTE basis A rose $2.8 billion from the fourth quarter of 2012 to $21.7 billion. Excluding the impact of debit valuation adjustments (DVA) and fair value option (FVO) adjustments B, revenue was $22.3 billion in the fourth quarter of 2013, compared to $19.6 billion in the fourth quarter of 2012.

Net interest income, on an FTE basis, rose 4 percent from the year-ago quarter to $11.0 billion A. The improvement was driven by reductions in long-term debt balances and yields, favorable market-related adjustments from lower premium amortization, lower rates paid on deposits, and higher commercial loan balances. These factors were partially offset by lower consumer loan balances and lower asset yields. Net interest margin was 2.56 percent in the fourth quarter of 2013, compared to 2.35 percent in the fourth quarter of 2012.

Noninterest income increased 28 percent from the year-ago quarter, to $10.7 billion, driven by lower representations and warranties provision and year-over-year improvement in both investment banking fees and investment and brokerage income. This was partially offset by lower equity investment income compared to the fourth quarter of 2012.

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