Bank of America reports 2.48% decline in Q3 pre-tax profits but declares $0.91 dividend

Bank of America reported its Q3 2023 results showing that pre-tax profits declined by 2.48% YoY to $8.095 billion.

This took nine-month pre-tax profits to $25.218 billion versus $23.072 billion in the same period last year.

Key highlights Q3 2023 vs. Q3 2022:

• Total Revenue, net of interest expense; $25.167 billion +2.71% YoY
• Net Interest Income $14.379 billion +4.46% YoY
• Non-interest income; $10.788 billion +0.47% YoY
• Provision for credit losses; $1.234 billion +37.42% YoY
• Net Income; $7.802 billion, +10.17% YoY

*      Total cash and cash equivalent; $378.955 billion +79.15% YoY

• Total loans and leases; $1.046 trillion, +1.15% YoY
• Total earnings assets; $2.739 trillion, +2.55% YoY
• Total assets; $3.133 trillion, -0.74% YoY
• Total deposits; $1.876 trillion, -4.41% YoY
• Earnings per share; $ 0.91, +12.35% YoY
• Dividend per share; $0.24, +20.00% YoY

Insights: Bank of America’s Q3 pre-tax profit showed a slight decrease primarily due to a significant increase in the provision for credit losses.

• However, thanks to a substantial 76% reduction in income tax expenses, the bank saw a 10.17% increase in net income, reaching $7.802 billion. This took the nine-month net income to $23.371 billion.
• In addition to the impact of the reduced income tax expenses on the bank’s bottom line, there was a 3% growth in total revenue (excluding interest expenses), reaching $25 billion. This growth was largely driven by the increase in net interest income.