Bank of America(US:BAC)2025-10-31 20:36Financial Overview - As of September 30, 2025, Bank of America had $3.4 trillion in assets and approximately 213,000 employees[17]. - The corporation serves approximately 69 million consumer and small business clients through about 3,600 retail financial centers and 15,000 ATMs[18]. - The corporation operates in more than 35 countries and jurisdictions, enhancing its global reach[17]. - Total assets increased by $142.2 billion to $3.4 trillion from December 31, 2024, primarily driven by growth in commercial loans and residential mortgages[24]. - Total liabilities increased by $133.6 billion to $3.1 trillion from December 31, 2024, mainly due to higher deposits in Global Banking and increased long-term debt issuances[25]. - Shareholders' equity rose by $8.6 billion from December 31, 2024, primarily due to net income and preferred stock issuances[26]. - Total common shareholders' equity reached $278.2 billion as of September 30, 2025, up from $272.4 billion as of December 31, 2024[24]. Income and Revenue - Net interest income increased by $1.3 billion to $15.2 billion for the three months ended September 30, 2025, and by $2.6 billion to $44.3 billion for the nine months ended September 30, 2025 compared to the same periods in 2024[27]. - Noninterest income rose by $1.5 billion to $12.9 billion for the three months ended September 30, 2025, and by $2.7 billion to $37.6 billion for the nine months ended September 30, 2025 compared to the same periods in 2024[28]. - Total revenue, net of interest expense, reached $28,088 million in the third quarter of 2025, compared to $26,463 million in the second quarter[44]. - Net income applicable to common shareholders for the third quarter of 2025 was $8,040 million, up from $6,825 million in the second quarter[44]. - Total revenue for the nine months increased by $1.8 billion to $18.8 billion, primarily due to higher sales and trading revenue and investment banking fees[102]. Expenses and Losses - Noninterest expense increased by $858 million to $17.3 billion for the three months ended September 30, 2025, and by $2.3 billion to $52.3 billion for the nine months ended September 30, 2025 compared to the same periods in 2024[32]. - The provision for credit losses decreased by $247 million to $1.3 billion for the three months ended September 30, 2025, remaining relatively unchanged at $4.4 billion for the nine months ended September 30, 2025[30]. - Noninterest expense for the third quarter of 2025 was $17,337 million, compared to $17,183 million in the second quarter[44]. - The provision for credit losses increased by $40 million to $269 million, primarily driven by the commercial and industrial portfolio[82]. Capital and Shareholder Returns - A $40 billion common stock repurchase program was authorized on July 23, 2025, replacing a previous $25 billion program[21]. - A quarterly common stock dividend of $0.28 per share was declared on October 23, 2025, payable on December 26, 2025[22]. - During the three months ended September 30, 2025, the Corporation repurchased $5.3 billion of common stock[120]. - Common stock dividends paid during the same period amounted to $2.1 billion[122]. Client and User Engagement - Approximately 49 million active users are utilizing Bank of America's digital banking platforms, with around 41 million being active mobile users[18]. - Bank of America provides industry-leading support to approximately four million small business households[18]. - Active mobile banking users increased by approximately two million, reflecting client growth and changes in banking preferences[63]. Risk and Regulatory Compliance - The corporation's operations are impacted by various risks, including economic conditions, regulatory changes, and geopolitical instability[12]. - The Common Equity Tier 1 (CET1) ratio was 11.6% as of September 30, 2025, exceeding the minimum requirement of 10.0%[119]. - Risk-weighted assets increased by $55.2 billion to $1,751 billion during 2025, driven by client activity in Global Markets and lending in Global Banking[129]. - The liquidity held in cash on deposit was $260 billion as of September 30, 2025, down from $315 billion at December 31, 2024[158]. Loan and Deposit Growth - Total loans and leases amounted to $1,153,035 million in the third quarter of 2025, up from $1,128,453 million in the second quarter[44]. - Total deposits reached $1,991,434 million in the third quarter of 2025, compared to $1,973,761 million in the second quarter[44]. - Average deposits grew by $9.1 billion to $947.4 billion, mainly due to a $15.5 billion increase in time deposits and $11.2 billion in net inflows in checking[57]. - Total deposits increased by $36.7 billion from December 31, 2024, reaching $2.00 trillion as of September 30, 2025, primarily due to growth in Global Banking[163]. Consumer Banking Performance - Net income for Consumer Banking increased by $750 million to $3.4 billion, primarily due to higher revenue and lower provision for credit losses[54]. - Net interest income rose by $710 million to $9.0 billion, driven by higher deposit spreads and increased loan and deposit balances[54]. - Total credit card purchase volumes increased by $2.5 billion and debit card purchase volumes increased by $10.7 billion, indicating higher consumer spending[64]. Wealth Management and Investment - Net income for Global Wealth & Investment Management (GWIM) increased by $204 million to $1.3 billion, primarily due to higher revenue, with an operating margin of 27% compared to 25%[69]. - Noninterest income rose by $459 million to $4.5 billion, driven by a 12% increase in asset management fees to $3.9 billion, attributed to higher average equity market valuations and positive AUM flows[69]. - Total client balances increased by $446.9 billion, or 11%, to $4.6 trillion, mainly due to higher market valuations and positive net client flows[78]. Market and Trading Performance - Net income for Global Markets increased by $99 million to $1.6 billion for the three months ended September 30, 2025, compared to the same period in 2024[97]. - Revenue increased by $594 million to $6.2 billion, primarily due to higher sales and trading revenue and investment banking fees[98]. - Total trading-related assets increased by 5% to $676.621 billion for the three months ended September 30, 2025, compared to the same period in 2024[99].