Bank of America Corp (NYSE:BAC) Q4 2019 Earnings Conference Call - Final Transcript
Jan 15, 2020 • 08:30 am ET
Paul M. Donofrio
of America Merchant Services joint venture. But there are two things worth noting as I close out. First, other income; at the total company level this quarter, included tax-advantaged investment partnership losses, that were about $200 million higher, when you compare to Q3. The benefits of this activity shows up in Global Banking -- in our Global Banking business, and are produced by client activity, related to tax-advantaged solar and wind investments. These investments generate good returns. However, the partnership losses, which reduce non-interest income and the tax benefit in our tax line from these investments, are not always realized in the same quarter, depending upon the type of investment. The second thing I want to mention, is the effective tax rate in the quarter of approximately 14%. It included the impact of higher tax credits from the increased tax-advantaged investments, and it also included roughly $300 million in discrete benefits from the resolution of several tax matters. Absent the discrete benefits in the quarter, our Q4 '19 tax rate would have been roughly 18%, and absent any unusual items, this is roughly where we expect the ETR for full year 2020 to be.
So thanks, and with that we will open it up to Q&A.