Bank of America Q4 net income up 43%
Bank of America’s fourth-quarter earnings exceeded expectations on Friday thanks in part to a solid performance in the bond trading division, although revenue fell a little short.
Bank of America Corp.
$39.40
11:09 27/09/24
Net income in the final quarter rose 43% from the same period a year ago to $4.7bn, with earnings per share up 38% to 40 cents, beating expectations of 38 cents per share.
However, revenue came in at $19.99bn, up from $19.58 the year before but slightly below expectations of $20.85bn.
Trading revenue in fixed income was up 12% to $1.96bn, while equity trading revenue grew 11% to $948m.
Meanwhile, quarterly expenses dropped 6.1% to $13.16bn as the bank cut jobs and closed branches and BofA said it intends to up its planned repurchases for the first half of this year to $4.3bn from $2.5bn.
Chief executive officer Brian Moynihan said: “We had strong results in 2016 because our strategy is working. We are lending more and seeing historically low charge-offs, which is what responsible growth is all about.
“Revenue was up modestly, but EPS grew by 15% as we continued to manage our expenses and create operating leverage. With strong leadership positions in our businesses against a backdrop of rising interest rates, we are well-positioned to continue to grow and deliver for our shareholders in 2017."