Bank of America Reports Mixed Q3 Results, Net Income Down 12% Year-Over-Year

Bank of America Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a mixed performance compared to the previous fiscal period. The company recorded a net income of $6.9 billion, or $0.81 per diluted share, for the third quarter, down from $7.8 billion, or $0.90 per diluted share, in the same period of 2023. For the nine months, net income was $20.5 billion, a decrease from $23.4 billion in the prior year.

Total assets increased to $3.3 trillion, up by $144.1 billion since December 31, 2023, while total liabilities rose by $139.3 billion to $3.0 trillion. Common shareholders’ equity also saw an increase, reaching $296.5 billion, up by $4.9 billion from the end of 2023. The Common Equity Tier 1 (CET1) capital ratio stood at 11.8%, exceeding the minimum requirement of 10.7% effective October 1, 2024.

Net interest income for the third quarter was $14.0 billion, a decline of $412 million from the previous year, while for the nine months, it totaled $41.7 billion, down by $1.3 billion. The net interest yield on a fully taxable-equivalent basis decreased to 1.92% for the third quarter and 1.95% for the nine months, reflecting lower revenue and higher noninterest expenses.

In contrast, noninterest income increased to $11.4 billion for the third quarter, up by $590 million year-over-year, and $34.8 billion for the nine months, an increase of $1.2 billion. This growth was driven by higher service charges, investment and brokerage services, and investment banking fees, which rose by $215 million for the third quarter and $969 million for the nine months.

The provision for credit losses rose significantly, totaling $1.5 billion for the third quarter, an increase of $308 million, and $4.4 billion for the nine months, up by $1.1 billion compared to the previous year. Noninterest expenses also increased, reaching $16.5 billion for the third quarter and $50.0 billion for the nine months, primarily due to higher revenue-related compensation and ongoing investments in technology and personnel.

Strategically, the Board of Directors authorized a $25 billion common stock repurchase program effective August 1, 2024, and declared a quarterly dividend of $0.26 per share, payable on December 27, 2024. The Federal Reserve's increase in the stress capital buffer from 2.5% to 3.2% was noted, impacting the capital requirements moving forward.

Overall, while Bank of America experienced declines in net income and net interest income, it saw growth in noninterest income and maintained a strong capital position, alongside strategic initiatives to enhance shareholder value.