Bank of America: Quarterly figures exceed expectations, partly thanks to window dressings

Bank of America has just presented its quarterly figures. Here are the key figures.

Turnover amounted to 23.1 billion dollars (previous year’s quarter 22.6/expected 23).

Earnings were $0.74 per share (prior-year quarter: $0.63/expected: $0.70). According to the bank’s CEO (see commentary below), the better value is partly due to the fact that Bank of America took 7% of its shares off the market in the last 12 months through share buybacks (fewer shares = higher earnings per share). But the fact that the profit also increased without window dressings is shown by the actual total figures. Net income rose year-on-year from $6.8 billion to $7.3 billion.

The data ( turnover and profit ) are thus not only above expectations, but also above the previous year’s value.

Retail banking: lending volume +6%, deposits +3%.

“Global Markets” division with a turnover of 4.14 billion dollars after 4.25 billion dollars in the previous year.

Depending on the ECN, the share is listed pre-market at -0.2% or -0.7%.

CEO commentary in wording:

Commentary from Chief Financial Officer Paul M. Donofrio:
“Diluted EPS grew seventeen percent from the year-ago quarter, aided in part by the repurchase of seven percent of our shares in the past twelve months as book value per share grew ten percent and capital and liquidity measures strengthened. We have recorded eighteen consecutive quarters of positive operating leverage while consistently making significant investments in the franchise. In the next twelve months, we plan to return $37 billion to shareholders through common dividends and share repurchases.“

Photo: Brian Katt CC BY-SA 3.0

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