Bank of America (BAC, Financial) reported third-quarter earnings before the market’s open Friday. Earnings per share were 48 cents, beating estimates by 3 cents. Revenue for the quarter was $21.84 billion, missing estimates by $140 million.
Revenue of $21.84 billion contributed to 2017 revenue of $66.9 billion. At $66.9 billion, revenue is now 5% higher for the year. Fully taxable equivalent (FTE) revenue is now $67.6 billion. Consumer banking reported the greatest portion of revenue at $25.6 billion. Revenue has been gaining steadily across all segments except global markets. Lower trading revenue has been a factor across the industry and Bank of America’s global markets segment is down 0.5%.
Earnings per share in the third quarter increased to 48 cents from 46 cents. For the year earnings per share are $1.35, an increase from $1.10. Net income for the year is up 18.9% at $15.7 billion. Consumer banking also reported the greatest portion of net income at $6.0 billion. Global banking net income reported the highest growth rate at 27.3%. Global markets net income is reporting an 8.7% decrease for the year.
Third-quarter bank earnings kicked off Oct. 12 with reports from Citigroup (C, Financial) and JPMorgan (JPM, Financial). Results have been mixed with JPMorgan reporting the highest earnings per share increase and return on equity.
Bank of America is trading at $25.53. It has gained 15.57% in 2017. For the one-year period it has a return of 61.34% and for the three-year period it has a return of 54.98%.
It has 10.6 billion shares outstanding with a market cap of $269.4 billion. Institutional shareholders own 69% of the outstanding shares. Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway (BRK.A, Financial) (BRK.B, Financial) is a top shareholder in the company. Other leading shareholders include Korea Investment Corp. and Harris Associates.
Disclosure: I do not own any shares of any stocks included in this article.
