Bank of America(US:BAC)2024-10-29 20:29Financial Performance - Net income for the three months ended September 30, 2024, was $6.9 billion, a decrease of 11% from $7.8 billion in the same period in 2023[12]. - Total revenue for the three months ended September 30, 2024, was $25.3 billion, slightly up from $25.2 billion in the same period in 2023[12]. - Noninterest income increased by $590 million to $11.4 billion for the three months ended September 30, 2024, compared to the same period in 2023[13]. - The efficiency ratio for the three months ended September 30, 2024, was 65.02%, compared to 62.93% in the same period in 2023[12]. - Noninterest expense increased by $641 million to $16.5 billion for the three months ended September 30, 2024, compared to the same period in 2023[16]. - Income before income taxes for the three months ended September 30, 2024, was $7.324 billion, a decrease from $8.095 billion in the same period of 2023[17]. - Net income for the three months ended September 30, 2024, was $6.896 billion, compared to $7.802 billion in the same period of 2023[21]. - Total revenue, net of interest expense, for the three months ended September 30, 2024, was $25.345 billion, slightly down from $25.377 billion in the previous year[21]. Asset and Liability Management - As of September 30, 2024, Bank of America had total assets of $3.3 trillion and a headcount of approximately 213,000 employees[8]. - Total loans and leases increased to $1,075.8 billion as of September 30, 2024, compared to $1,053.7 billion at the end of 2023[12]. - Total deposits reached $1,930.4 billion as of September 30, 2024, up from $1,923.8 billion at the end of 2023[12]. - Total earning assets increased to $2,917,697 million, generating net interest income of $37,638 million with a yield of 5.14%[24]. - Total loans and leases reached $1,059,728 million, with a net interest margin of 5.93%[24]. - Total interest-bearing deposits rose to $1,413,708 million, with an average yield of 2.85%[25]. - Total deposits decreased by 3% to $939.05 billion compared to the previous year[38]. Credit Quality and Losses - Provision for credit losses rose by $308 million to $1.5 billion for the three months ended September 30, 2024, driven primarily by credit card loans and the commercial real estate office portfolio[15]. - The allowance for loan and lease losses as a percentage of total loans and leases outstanding was 1.24% as of September 30, 2024[21]. - Net charge-offs increased by $240 million and $954 million to $1.0 billion and $3.1 billion for the three and nine months ended September 30, 2024, primarily due to higher credit card loan charge-offs[107]. - Nonperforming loans increased compared to December 31, 2023, primarily driven by commercial real estate[107]. - The provision for credit losses for the consumer portfolio decreased by $93 million to $1.1 billion for the three months ended September 30, 2024, compared to the same period in 2023[153]. Capital and Regulatory Ratios - The Common equity tier 1 (CET1) capital ratio was 11.8% as of September 30, 2024, exceeding the minimum requirement of 10.7%[10]. - The market capitalization as of September 30, 2024, was $305.09 billion[21]. - The CET1 capital ratio under the Standardized approach was 11.8%, exceeding the minimum requirement of 10.0%[82]. - The total capital ratio under the Advanced approaches was 16.3%, exceeding the regulatory minimum of 13.5%[82]. - The total risk-weighted assets (RWA) increased to $1,689 billion, primarily driven by client activity in Global Markets and lending in Global Banking[84]. - The Supplementary Leverage Ratio (SLR) was 5.9% as of September 30, 2024, exceeding the minimum requirement of 3.0%[81]. Segment Performance - Net income for the Consumer Banking segment was $1,870 million in 2024, down from $2,184 million in 2023, marking a decrease of 14.3%[31]. - Net income for Global Wealth & Investment Management (GWIM) increased by $28 million to $1.1 billion for the three months ended September 30, 2024[51]. - Net income for Global Banking decreased to $1,895 million, down 26% from $2,568 million in the same quarter of the previous year[54]. - Net income for Global Markets increased by $300 million to $1.5 billion for the three months ended September 30, 2024, compared to the same period in 2023[68]. Market and Economic Conditions - Various macroeconomic challenges, including inflation and elevated interest rates, have created uncertainty impacting multiple industries[142]. - The net country exposure for the top 20 non-U.S. countries increased by $21.5 billion in 2024, primarily driven by increases in the United Kingdom, Japan, and the Netherlands[149]. Sustainability and Climate Goals - The company has set a goal to achieve net zero greenhouse gas emissions before 2050, with interim targets for 2030 across high-emitting sectors[171]. - The company aims to mobilize and deploy $1.5 trillion in sustainable finance by 2030, with $1 trillion dedicated to supporting the transition to a low-carbon economy[171].