Bank of America(BAC) ZACKS·2024-11-14 17:35Core Viewpoint - Bank of America reported a mixed performance in its Q3 2024 earnings, with a slight earnings beat but a decline in net income compared to the previous year, raising questions about future performance trends [2][4][10]. Financial Performance - Q3 2024 earnings per share were 81 cents, surpassing the Zacks Consensus Estimate of 78 cents, but down from 90 cents in the prior-year quarter [2]. - Total net revenues increased to 25.29 billion, and showing a nearly 1% increase year over year [5]. - Net interest income (NII) fell 2.9% to 14.27 billion, with a net interest yield contraction of 19 basis points year over year to 1.92% [5][6]. - Non-interest income rose 5.5% to 10.98 billion [6]. Revenue Drivers - Investment banking fees totaled 4.94 billion, with fixed-income trading fees increasing by 8% and equity trading income rising by 17.8% [3]. Credit Quality and Capital Position - Provision for credit losses increased by 25% to 1.53 billion [7]. - The common equity tier 1 capital ratio remained stable at 13.5% year over year, indicating a strong capital position [8]. Shareholder Returns - The company repurchased shares worth 14.3 billion or more, assuming two rate cuts [10]. - Total non-interest expenses are expected to remain stable at $16.5 billion in Q4 2024 [10]. Industry Context - Bank of America is part of the Zacks Financial - Investment Bank industry, where JPMorgan Chase & Co. reported a 7% year-over-year revenue increase and a slight EPS growth, indicating competitive performance within the sector [14].