Net income rose 15% to $8.2 billion, or $0.94 per diluted share, compared to $7.1 billion, or $0.80 per diluted share for Q1-22
• Pretax income up 15% to $9.1 billion
– Pretax, pre-provision income(C) increased 27% to $10.0 billion
• Revenue, net of interest expense, increased 13% to $26.3 billion
– Net interest income (NII)(D) up $2.9 billion, or 25%, to $14.4 billion driven by benefits from higher interest rates and solid loan growth
– Noninterest income of $11.8 billion increased $154 million, or 1%, as higher sales and trading revenue
more than offset lower service charges and declines in asset management and investment banking fees
• Provision for credit losses of $931 million increased $901 million
– Net reserve build of $124 million vs. net reserve release of $362 million in Q1-22(E)
– Net charge-offs of $807 million increased compared to prior year and remained below pre-pandemic levels
• Noninterest expense increased $919 million, or 6%, to $16.2 billion driven by investments in the franchise across people and technology as well as higher FDIC expense,partially offset by lower revenue-related incentive compensation; operating leverage of 7%(A); efficiency ratio of 62%
Average loan and lease balances up $64 billion, or 7%, to $1.0 trillion led by solid commercial loan growth as well as higher credit card balances
• End of period deposit balances declined $20 billion, or 1%, to $1.9 trillion compared to Q4-22; average deposits down $152 billion, or 7%, to $1.9 trillion
• Average Global Liquidity Sources of $854 billion(F)• Common equity tier 1 (CET1) ratio of 11.4%
(Standardized) increased 14 bps from Q4-22(G); returned $4.0 billion to shareholders through common stock dividends and share repurchases6
• Book value per common share rose 6% to $31.58; tangible book value per common share rose 9% to $22.788
• Return on average common shareholders’ equity ratio of 12.5%; return on average tangible common shareholders’ equity ratio of 17.4%
From Chair and CEO Brian Moynihan: “Every business segment performed well as we grew client
relationships and accounts organically and at a strong pace. Led by 13% year-over-year revenue growth, we delivered our seventh straight quarter of operating leverage. We further strengthened our balance sheet and maintained strong liquidity. We delivered earnings of $0.94 per share,up 18% over Q1-22, in an economy with modestly slower GDP growth. Our results demonstrate how our company’s
decade-long commitment to responsible growth helped to provide stability in changing economic environments.
