This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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)

Revenue increased 7 percent from the year-ago quarter to $4.5 billion, driven by higher noninterest income related to long-term AUM flows and higher market levels.

The provision for credit losses decreased $86 million from the year-ago quarter to $26 million due to improvement in the home loans portfolio. Noninterest expense of $3.3 billion increased 2 percent, driven by higher volume-related expenses, partially offset by lower support and other personnel costs.

Client balances rose 10 percent from a year ago to $2.37 trillion, driven largely by higher market levels, long-term AUM flows of $47.8 billion and period-end client loan growth of $9.5 billion. Assets under management rose $123.4 billion, or 18 percent, from the fourth quarter of 2012 to $821.4 billion, driven by market appreciation and long-term AUM flows. Average deposit balances declined $9.3 billion from the fourth quarter of 2012 to $240.4 billion as the impact of transfers to CBB was partially offset by organic growth.

Global Banking
  Three Months Ended   Year Ended
(Dollars in millions) December 31 2013   December 312012   December 31 2013   December 312012
Total revenue, net of interest expense, FTE basis $ 4,305   $ 3,951 $ 16,481   $ 15,674
Provision for credit losses 441 62 1,075 (342 )
Noninterest expense 1,927 1,753 7,552 7,619
Net income $ 1,267 $ 1,392 $ 4,974 $ 5,344
Return on average allocated capital 1, 2 21.86 % % 21.64 % %
Return on average economic capital 1, 2 28.97 27.69
Average loans and leases $ 268,849 $ 232,396 $ 257,245 $ 224,336
Average deposits 259,762     242,817     237,457     223,940  

1 Effective January 1, 2013, the company revised, on a prospective basis, its methodology for allocating capital to the business segments. In connection with this change in methodology, the company updated the applicable terminology to allocated capital from economic capital as reported in prior periods. For reconciliation of allocated capital, refer to pages 23-25 of this press release.

2 Return on average allocated capital and return on average economic capital are non-GAAP financial measures. The company believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. For reconciliation to GAAP financial measures, refer to pages 23-25 of this press release.

Business Highlights
  • Global Banking achieved record revenues and firmwide Investment Banking fees.
  • Firmwide investment banking fees of $1.7 billion, excluding self-led deals, increased $441 million, or 34 percent, from the prior quarter and $138 million, or 9 percent, from the year-ago quarter.
  • Bank of America Merrill Lynch (BAML) maintained its No. 2 ranking in global net investment banking fees in the fourth quarter of 2013, with an increase in market share to 8.0 percent from 7.3 percent in the third quarter of 2013, and was No. 1 in investment banking fees in the Americas with 10.7 percent market share in the fourth quarter of 2013 C. BAML was also ranked among the top three global financial institutions in announced mergers and acquisitions, leveraged loans, investment-grade corporate debt, mortgage-backed securities, asset-backed securities and syndicated loans during the fourth quarter of 2013 C.
  • Average loan and lease balances increased $36.5 billion, or 16 percent, from the year-ago quarter, to $268.8 billion with growth primarily in the commercial and industrial loan portfolio and the commercial real estate portfolio.
  • Average deposits rose $16.9 billion, or 7 percent, from the year-ago quarter to $259.8 billion due to client liquidity and international growth.

Financial Overview

Global Banking reported net income of $1.3 billion in the fourth quarter of 2013, down $125 million from the year-ago quarter, as an increase in revenue was more than offset by higher provision for credit losses as the company built reserves associated with loan growth. Net charge-offs declined to $7 million in the fourth quarter of 2013 from $132 million in the fourth quarter of 2012.

Revenue of $4.3 billion was up 9 percent from the year-ago quarter, reflecting higher net interest income, driven by loan growth and higher Investment Banking fees.

7 of 25

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs