Page 197 - Bank Case Studies

Diagram 6: Source: Bank of America - Ref: (14)

The earnings report from BofA point to the key variables

moving in the right direction as the figures below show:

• “Net interest income came in at $11.2 billion during the second

quarter of 2017, growing by 9% versus the same quarter last year.

• Net interest yield grew from 2.23% to 2.34%.

• Investment banking fees grew 9%, to $1.5 billion during the period.

• Average deposits grew 4% versus the second quarter in 2016, and
average loans and leases increased 5%.

• The company ended the quarter with over $2.6 trillion in assets under
management in the wealth management business, generating $28

billion in asset flows during the period.

• Asset quality is clearly improving across different segments, and
consumer net charge-offs are at the lowest level in over a decade.

Provision for credit losses improved 26% to $726 million from $976
million. Net charge-offs declined 8%, and the net charge-off ratio

declined to 0.40% from 0.44%.