Bank of America posts solid Q3 2018 results, digital usage continues to grow

Maria Nikolova

The consumer banking segment registered 25.9 million active mobile banking users, up 10% from the year-ago quarter.

Bank of America has earlier today published its key financial and operating metrics for the third quarter of 2018, with consumer banking marking continued growth in digital usage.

The consumer banking segment saw net income increase $1 billion, or 49%, from a year earlier, to $3.1 billion, driven by strong operating leverage of 10%. Revenue increased $629 million, or 7%, to $9.4 billion in the quarter to end-September 2018.

The segment marked 25.9 million active mobile banking users, up 10% from the equivalent quarter in 2017, whereas digital sales climbed and now account for 23% of all Consumer Banking sales. Mobile channel usage is up 17% from the year-ago quarter.

The bank is adding mobile digital identity functions, such as biometrics, that will integrate across channels, including call centers.

In June this year, for instance, Merrill Lynch introduced new mobile app features that aim to make it easier for clients to manage their finances. Merrill Lynch clients got the ability to use their Merrill Lynch mobile app to scan and send paper documents to their financial advisors. The new scanning feature uses the device’s camera to capture images of each page and converts them into a single PDF file. The list of new features also includes a spending and budgeting tool; the ability to view transactional activity for Bank of America deposit and card accounts; real-time money transfers with Zelle®; FICO score visibility; as well as access to seven years’ worth of statements and documents.

Brian Moynihan, Chairman and Chief Executive Officer, commented the robust results for the third quarter of 2018, noting the bank’s “high-tech, high-touch approach continues to drive both client satisfaction and efficiencies”.

“More than 3 million users have accessed Erica, an AI virtual assistant, since its April rollout, and nearly a quarter of deposit transactions this quarter were performed via mobile device. We also have opened 53 financial centers and renovated more than 400 others in the last 12 months. We continue to expand into new markets, recently opening our first financial center in Pittsburgh, and we plan to open in Salt Lake City in the coming months, with additional markets to follow. In Global Banking, deposit growth reflects GTS investments, and Global Markets profitability improved. Bank of America is helping our clients address the straightforward question of what they would like the power to do, and delivering capabilities and solutions to help them reach their goals,” said Brian Moynihan.

Across all segments, net income was up 32% year-on-year to $7.2 billion in the third quarter of 2018, on the back of continuing strong operating leverage and asset quality, as well as the benefit of tax reform. Diluted earnings per share grew 43% to $0.66. Pretax income increased 18% from the year-ago quarter to $9 billion, whereas revenue, net of interest expense, increased 4% to $22.8 billion.

Read this next

Institutional FX

Euronext’s FX volume takes yet another step back in July

Pan-European exchange, Euronext has reported a 7.6 percent drop in the average daily volume on its spot foreign exchange market. The ADV figure stood at $21.4 billion in July 2022, which is down from June’s $23.1 billion.

Executive Moves

IG Group strengthens institutional sales with appointment of Glen Hastings

IG Group, Europe’s largest online trading platform, has onboarded Glen Hastings to the role of its institutional sales manager. He joins the FCA-regulated broker with immediate effect, based out of its offices in London.

Digital Assets

Voyager customers can withdraw up to $100K in cash via ACH transfer

Following approval of the bankruptcy judge, cryptocurrency brokerage firm Voyager plans to return $270 million in customer cash. The amount represents a small portion of investors’ crypto holding that have been locked up since the company filed for bankruptcy in April.

Retail FX

Britain’s lifeboat system to conclude LCG compensation scheme

Britain’s Financial Services Compensation Scheme (FSCS) said today it’s preparing to close the compensation scheme of the collapsed mini-bond provider, London Capital & Finance.

Uncategorized

Robinhood parts ways with its first CPO Aparna Chennapragada

In what apparently part of the restructuring it announced last month, Robinhood is parting ways with its Chief Product Officer Aparna Chennapragada. However, she’ll remain employed in an advisory role to the CEO through January 2023.

Digital Assets

Crypto.com expands regulatory footprint with new licence in South Korea

Crypto.com has acquired payment service provider ‘PnLink Co., Ltd.’ and virtual asset service provider ‘OK-BIT Co., Ltd.’ The move effectively provides a regulatory stamp for the company’s digital assets and cryptocurrencies business in South Korea.

Metaverse Gaming NFT

Why NFT Technology Could be the Much Needed Solution to Crypto Inheritance 

The digital asset market may have started with Bitcoin’s humble beginning but its fortunes have changed over the past decade.

Industry News

Kohle Capital Markets expands CFDs lineup to 200+ stocks

Kohle Capital Markets (KCM), the leading international provider of online trading, has once again expanded its contracts-for-difference (CFDs) offering, this time with the addition of new products on its trading platform.

Industry News

Kohle Capital Markets continues CSR initiatives with donation of art piece to Lions Club International

Global brokerage firm Kohle Capital Markets (KCM) is taking its corporate social responsibility very seriously and continues to navigate the challenging period brought forth by the pandemic and Russia-Ukraine war.

<