BofA Loss Clouds Credit Improvements

The bank’s third quarter earnings were $0.27 EPS rather than the $0.16 estimate.  Revenues were up about 2% at $26.98 billion, shy of the $27.15 billion estimate from Thomson Reuters.

Capital versus Q2:

• Tier 1 common was 8.45% vs 8.01%;
• tier 1 capital 11.16% vs. 10.67%;
• tangible common equity 5.77% vs 5.36%;
• tangible book value rose to $12.91, up 6.3% sequentially and up 7.6% from year ago.

Net interest income rose 8% but net of interest expense it was down 8% from last quarter.  The bank showed lower loan levels was impacted by the no-rate or low-rate environment.

Provision for credit losses was $5.4 billion, down from $8.1 billion sequentially and less than half the year ago levels.  Net charge-offs fell by $2.4 billion based upon the consumer and commercial portfolio improvement on continued improvement in delinquencies.

JON C. OGG