Bank of America Corporation Reports Earnings Results for the Fourth Quarter and Full Year of 2017; Provides Tax Rate Guidance for the Year 2018
The company reported net income of $2.4 billion or $0.20 per diluted share in fourth quarter. Late in the quarter, the company informed that the company expected an impact of approximately $3 billion dollars from the Tax Act. The company estimated impact the company just saw is $2.9 billion, lowering EPS by $0.27. Tangible book value per share of $16.96 was modestly above fourth quarter of 2016 as earnings over the year, including the Tax Act impact, offset share repurchases and dividends as well as the conversion of Berkshire preferred stock to common shares. Net interest income on a GAAP non-FTE basis was $11.5 billion, $11.7 billion on an FTE basis. Compared to fourth quarter of 2016, GAAP NII is up $1.2 billion or more than 11%, driven by the spread improvement between asset yields and funding cost.
The company expects GAAP tax rate for 2018 to be around 29% before unusual items.