Core Insights - Bank of America reported $27.37 billion in revenue for Q1 2025, a 6% year-over-year increase, with an EPS of $0.90 compared to $0.83 a year ago, exceeding the Zacks Consensus Estimate of $26.86 billion by 1.89% and delivering an EPS surprise of 11.11% [1] Financial Performance Metrics - Efficiency Ratio (FTE basis) was 64.6%, better than the average estimate of 65.6% from seven analysts [4] - Net interest income/yield on earning assets was 2%, matching the average estimate [4] - Net charge-off/Average Loans stood at 0.5%, lower than the average estimate of 0.6% [4] - Book value per share of common stock was $36.39, slightly above the estimated $36.32 [4] - Total earning assets averaged $2,966.84 billion, exceeding the estimate of $2,936.53 billion [4] - Total nonperforming loans, leases, and foreclosed properties were $6.20 billion, below the average estimate of $6.52 billion [4] - Total Non-Performing Loans were $6.08 billion, also below the average estimate of $6.48 billion [4] - Tier 1 Capital Ratio was 12.9%, lower than the average estimate of 13.2% [4] - Tier 1 Leverage Ratio was 6.8%, slightly below the average estimate of 6.9% [4] - Total Noninterest Income reached $12.92 billion, surpassing the average estimate of $12.35 billion [4] - Net Interest Income on a fully taxable-equivalent basis was $14.59 billion, in line with the average estimate of $14.58 billion [4] - Investment and brokerage services generated $4.81 billion, exceeding the average estimate of $4.69 billion [4] Stock Performance - Bank of America's shares have returned -11.5% over the past month, compared to the Zacks S&P 500 composite's -3.9% change, with a Zacks Rank of 3 (Hold), indicating potential performance in line with the broader market [3]

Bank of America beat expectations with a strong Q1 2025 earnings report.Bank of America (BAC 3.25%), a major player in the financial services industry, released its earnings for Q1 2025 on April 15, 2025. The quarter was marked by a significant earnings beat with EPS (GAAP) coming in at $0.90, outperforming market expectations by 9.8%. Revenue (GAAP) totaled $27.37 billion, surpassing estimates by $393 million or 1.5%. Overall, the quarter highlighted Bank of America's strong operational performance and str ...

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Bank of America (BAC) Q1 2025 Earnings Call April 15, 2025 08:30 AM ET Company Participants Lee McEntire - SVP of Investor RelationsBrian Moynihan - Chairman, CEO & PresidentAlastair Borthwick - CFOSteven Chubak - Managing DirectorMike Mayo - Managing DirectorMatthew O'Connor - Managing DirectorBetsy Graseck - Managing DirectorGerard Cassidy - Managing Director Conference Call Participants John McDonald - Senior Research AnalystJames Mitchell - Senior Equity AnalystGlenn Schorr - Senior Managing Director & ...

Bank of America (BAC) came out with quarterly earnings of $0.90 per share, beating the Zacks Consensus Estimate of $0.81 per share. This compares to earnings of $0.83 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.11%. A quarter ago, it was expected that this nation's second-largest bank would post earnings of $0.77 per share when it actually produced earnings of $0.82, delivering a surprise of 6.49%.Over the last four qua ...

Core Insights - Bank of America (BofA) exceeded profit estimates for the first quarter, driven by increased interest income and strong trading performance amid market volatility related to U.S. tariff policies [1][5][12] - CEO Brian Moynihan expressed confidence in the company's disciplined investments and diverse business model as strengths in a potentially changing economy [2] - The bank's earnings reached $7.4 billion, or 90 cents per share, compared to $6.7 billion, or 76 cents per share, in the same quarter last year, surpassing analyst expectations of 82 cents per share [9][10] Financial Performance - Trading revenue increased by 9%, with equities trading up 17% to a record $2.2 billion, and fixed income, currencies, and commodities rising 5% to $3.5 billion [1][5] - Net interest income (NII) grew 3% to $14.4 billion, supported by lower deposit costs, with a maintained forecast of $15.5 billion to $15.7 billion for the fourth quarter [12] - Investment banking fees fell 3% to $1.5 billion, reflecting a 13% decline in U.S. M&A activity in the first three months of 2025 [14] Market Context - The market environment has been characterized by considerable turbulence due to tariff policies, affecting investment banking sentiment and deal-making activity [3][14] - Despite concerns, the research team at BofA does not anticipate a recession, citing healthy employment and resilient consumer behavior [6] - Competitors like JPMorgan Chase and Goldman Sachs also reported strong trading performance, indicating a broader trend in the banking sector [6]

Financial Data and Key Metrics Changes - Bank of America reported a net income of $7.4 billion and earnings per share (EPS) of 90 cents for Q1 2025, reflecting a year-over-year revenue growth of 6%, net income growth of 11%, and EPS growth of 18% [8][25] - The return on assets was 89 basis points, and the return on tangible common equity was 14% [8] - Net interest income (NII) grew by 3% year-over-year, reaching $14.4 billion on a GAAP basis [39] Business Line Data and Key Metrics Changes - Consumer banking generated $10.5 billion in revenue and $2.5 billion in net income, with revenue growth of 3% year-over-year [55] - Wealth management reported revenue of $6 billion, growing 8% year-over-year, with net income of $1 billion [60] - Global banking produced earnings of $1.9 billion, with revenue flat at $6 billion compared to the previous year [63] - Global markets earned $1.9 billion, with revenue improving by 10% year-over-year [66] Market Data and Key Metrics Changes - Deposits reached nearly $2 trillion, growing 8% from mid-2023 lows, marking the seventh consecutive quarter of deposit growth [9][35] - Commercial loans grew by 7% year-over-year, with a modest increase in revolver utilization noted [37] - Consumer spending across various methods grew at a pace of 4.4% in Q1 2025 compared to Q1 2024 [19] Company Strategy and Development Direction - The company continues to focus on organic growth across its business lines, with significant investments in commercial banking and wealth management [14][98] - Bank of America is leveraging technology, including artificial intelligence, to enhance efficiency and client engagement [100] - The company aims to maintain a strong balance sheet with over $200 billion in regulatory capital and nearly $1 trillion in liquidity [12][32] Management's Comments on Operating Environment and Future Outlook - Management does not anticipate a recession in 2025 but has lowered GDP growth expectations [18] - The company is prepared for potential economic changes, emphasizing the strength of its credit portfolios and capital [70][71] - Consumer spending remains robust, with a 5% growth rate observed in early April 2025 [126] Other Important Information - Non-interest expenses were reported at $17.8 billion, up from the previous quarter, driven by seasonal payroll taxes and litigation costs [27][50] - The tangible book value per share increased by 9% year-over-year to $27.12 [32] Q&A Session Summary Question: Capital management and CET1 ratio comfort level - Management indicated flexibility in capital management and emphasized the importance of maintaining a strong CET1 ratio while growing into the capital base [96] Question: Outlook for loan and deposit growth - The strength in loan and deposit growth is attributed to investments in commercial banking and enhanced efficiency through technology [98][100] Question: Loan loss reserve dynamics - The reserve was set using blue chip economic indicators, reflecting a cautious approach to economic growth and inflation [106][108] Question: Expense outlook for the year - Management confirmed that the expense growth expectation remains at 2% to 3% for the full year [113] Question: Impact of interest rate cuts on NII target - Management maintains the NII target for Q4 2025 despite anticipated interest rate cuts, emphasizing the company's historical earnings power [120][123] Question: Near-term business segment activity amid volatility - Increased customer activity in global markets was noted, with no significant deposit flight observed [125]

Group 1: Bank of America Corporation (BAC) - Bank of America shares have gained +2.5% over the past year, underperforming the Zacks Financial - Investment Bank industry's gain of +20.4% [3] - Non-interest income is projected to rise only 3.4% in 2025, while total non-interest expenses are expected to increase by 3% [4] - Net interest income (NII) is anticipated to grow at a CAGR of 5.3% over the next three years, with total revenues projected to increase by 4.8% in 2025 [5] Group 2: Chevron Corporation (CVX) - Chevron shares have declined -6.2% over the past six months, compared to the Zacks Oil and Gas - Integrated - International industry's decline of -11.9% [6] - The planned acquisition of Hess Corporation is expected to enhance Chevron's presence in oil-rich Guyana, although the company faces challenges from oil price fluctuations and high valuation [7] Group 3: Stryker Corporation (SYK) - Stryker shares have gained +4.3% over the past year, slightly underperforming the Zacks Medical - Products industry's gain of +5.5% [8] - Growth drivers include rising demand for robotic-assisted procedures, hospital capital expenditures, and international expansion, supported by the Mako SmartRobotics platform [9] - However, foreign exchange volatility and supply chain disruptions may impact earnings, alongside increasing competition in the MedTech sector [10] Group 4: Value Line, Inc. (VALU) - Value Line shares have outperformed the Zacks Financial - Investment Management industry over the past year, with a gain of +10% compared to +6.4% [11] - The company has robust cash generation, with cash balances increasing to $27.1 million from $6.1 million year-over-year, supporting dividends and growth investments [11] - However, core publishing revenue declined to $26.7 million, and customer concentration poses a risk [13] Group 5: Sypris Solutions, Inc. (SYPR) - Sypris Solutions shares have gained +3.6% over the past year, underperforming the Zacks Electronics - Miscellaneous Services industry's gain of +36.3% [14] - The company benefits from a long-term supply agreement with a global OEM, providing stable revenues as a sole-source supplier [14] - However, liquidity challenges and rising costs may constrain financial flexibility, while competitive pressures in aerospace heighten vulnerability [16]

Financial Performance - Net interest income for Q1 2025 was $14,443 million, an increase of 0.6% from Q4 2024's $14,359 million[7] - Noninterest income rose to $12,923 million in Q1 2025, up 17.6% from $10,988 million in Q4 2024[7] - Total revenue, net of interest expense, reached $27,366 million, a 7.9% increase compared to $25,347 million in Q4 2024[7] - Net income for Q1 2025 was $7,396 million, representing a 10.9% increase from $6,665 million in Q4 2024[9] - Diluted earnings per common share increased to $0.90 in Q1 2025, compared to $0.82 in Q4 2024[8] - The efficiency ratio improved to 64.93% in Q1 2025, down from 66.23% in Q4 2024[7] - Total revenue, net of interest expense, reached $27,511 million in Q1 2025, compared to $25,501 million in Q4 2024[16] - Net income for Q1 2025 was $7,396 million, up from $6,665 million in Q4 2024[18] Asset and Deposit Growth - Total assets increased to $3,349,424 million as of March 31, 2025, up from $3,261,519 million at the end of 2024, representing a growth of approximately 2.7%[11] - Total deposits grew to $1,989,564 million in Q1 2025, compared to $1,965,467 million in Q4 2024, reflecting an increase of approximately 1.2%[11] - Total assets increased to $3,351,423 million in Q1 2025 from $3,318,094 million in Q4 2024, reflecting a growth of 1.0%[14] - Total deposits at the end of Q1 2025 were $1,989,564 million, up from $1,965,467 million at the end of Q4 2024[18] Credit Losses and Provisions - Provision for credit losses was $1,480 million, slightly higher than $1,452 million in Q4 2024[8] - The provision for credit losses in Q1 2025 was $1,480 million, compared to $1,452 million in Q4 2024[18] - The allowance for loan and lease losses remained stable at $13,256 million in Q1 2025, slightly up from $13,240 million in Q4 2024[11] - The allowance for credit losses totaled $14,366 million as of March 31, 2025, with a reserve for unfunded lending commitments of $1,110 million[36] Capital Ratios and Equity - As of March 31, 2025, the Common Equity Tier 1 capital stands at $201,177 million, a slight increase from $201,083 million in December 31, 2024[12] - The Total Capital under the Standardized approach is $256,443 million, compared to $255,363 million at the end of 2024[13] - The Common Equity Tier 1 capital ratio is reported at 11.8% as of March 31, 2025, down from 11.9% in December 31, 2024[12] - Total common shareholders' equity increased to $275,082 million as of March 31, 2025, compared to $272,400 million in December 31, 2024[13] Segment Performance - Net interest income for the Global Wealth & Investment Management segment was $1,765 million in Q1 2025, compared to $1,753 million in Q4 2024, an increase of 0.7%[22] - Net income for the Global Wealth & Investment Management segment decreased to $1,007 million in Q1 2025 from $1,171 million in Q4 2024, a decline of 13.9%[22] - Net interest income in the Global Banking segment for Q1 2025 was $3,151 million, down from $3,270 million in Q4 2024, representing a decrease of about 3.6%[24] - Total revenue, net of interest expense, for the Global Banking segment was $5,977 million in Q1 2025, compared to $6,091 million in Q4 2024, a decline of approximately 1.9%[24] Nonperforming Loans and Credit Quality - Nonperforming loans, leases, and foreclosed properties were $2,987 million in Q1 2025, slightly up from $2,970 million in Q4 2024[25] - Nonperforming consumer loans and leases decreased to $2,613 million in Q1 2025 from $2,647 million in Q4 2024, a reduction of 1.3%[34] - Total nonperforming commercial loans and leases increased to $3,470 million in Q1 2025 from $3,328 million in Q4 2024, an increase of 4.3%[34] Miscellaneous - The corporation uses non-GAAP financial measures to provide additional clarity in understanding its results of operations and trends[38] - The corporation's return on average tangible common shareholders' equity is a key measure for evaluating its growth goals[37] - Book value per share of common stock rose to $36.39 in Q1 2025, up from $33.71 in Q4 2024, indicating improved shareholder value[39] - Tangible book value per share of common stock increased to $27.12 in Q1 2025 from $24.79 in Q4 2024, reflecting a positive trend in tangible equity per share[39]

CHARLOTTE, N.C., April 15, 2025 /PRNewswire/ -- Bank of America reported its first quarter 2025 financial results today. The news release, supplemental filing and investor presentation can be accessed at Bank of America's Investor Relations website at https://investor.bankofamerica.com/quarterly-earnings. Investor Conference Call information Chief Executive Officer Brian Moynihan and Chief Financial Officer Alastair Borthwick will discuss the financial results in an investor conference call at 8:30 a.m. ET ...