Bank of America's Q1 Consumer Banking Income Takes A Hit, Adds 1M Credit Card Accounts

Zinger Key Points
  • Bank of America beats Q1 EPS estimates, posts $7.2B net income.
  • BAC Q1 revenue dips but tops forecasts; credit loss provisions rise.

Bank of America Corp BAC reported a first-quarter fiscal 2024 adjusted net income of $7.2 billion and adjusted EPS of $0.83, beating the consensus of $0.77.

Revenue, net of interest expense, decreased 2% year over year to $25.8 billion. Adjusted revenue declined 1.6% year over year to $25.98 billion, beating the consensus of $25.46 billion.

Segment Net income: Consumer Banking $2.66 billion (-14.5% Y/Y), Global Wealth and Investment Management $1.01 billion (+9.6% Y/Y), Global Banking $1.99 billion (-22.3% Y/Y), and Global Markets $1.79 billion (+6.6% Y/Y).

The Net interest income was $14.03 billion (-2.9% Y/Y), as higher deposit costs more than offset higher asset yields and modest loan growth. Noninterest income was $11.79 billion (-0.2% Y/Y).

Provision for credit losses $1.3 billion, compared to $931 million a year ago.

The efficiency ratio for the quarter was 67%, compared to 62% a year ago.

The bank reported a CET1 ratio of 11.8%, up 40 bps from a year ago. The book value per share of $33.71 improved by 7%.

The average loan and lease balance was $1.05 trillion (+1.0% Y/Y). Average deposits are up 0.7% Y/Y to $1.91 trillion.

Bank of America added over 1.0 million credit card accounts during the quarter.

Bank of America stock gained over 18% in the last 12 months. Investors can gain exposure to the stock via First Trust Nasdaq Bank ETF FTXO and Invesco KBW Bank ETF KBWB.

Price Action: BAC shares are trading higher by 0.42% at $36.10 premarket on the last check Tuesday.

Photo via Shutterstock

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