Bank of America, America’s second-biggest bank by assets reported better than expected fourth quarter earnings before the bell Wednesday. $BAC follows other money center major banks $PNC, $WFC, $C and $JPM with better than expected revenue.
Bank of America $BAC, America’s second-biggest bank by assets reported better than expected fourth quarter earnings before the bell Wednesday. $BAC follows other money center major banks Wells Fargo $WFC Citigroup $C and JPMorgan $JPM with better than expected revenue.
Reaction: Bank of America NYSE
$BAC PreMarket $31.28 +0.01 (+.03 %)
Earnings: EPS of 47 cents a share beating EPS of 41 cents but lower revenue of $20.44 Billion versus revenue $21.284 Billion expectations
This compares to last quarter EPS ofs 48 cents with revenue of $22.070 billion beatung expected EPS of 46 cents on expected revenue of $21.981 billion.
- Consumer banking revenue grew 10% to $9 billion,
- Wealth management grew 7% to $4.7 billion,
- Global banking grew 10% to $5 billion,
- Sales and trading revenue sank 9% to $2.5 billion.
- Fixed income, currency and commodities trading revenue fell 13%
- Equities revenue was flat.
Net interest income grew 11.4% to $11.46Bil for $BAC. This was primarily driven by three interest rate increases in 2017. However, non-interest income fell 7% to $9Bil due to the impact of the tax act and lower mortgage banking income.
Previous Quarter Earnings
- Bank of America $BAC Earnings Beat Estimates With Strong Trading Result
- Bank of America $BAC Earnings Beats on Trading Income Rise
The bank rally had been fueled by expectations for easier regulations including a possible repeal of DoddFrank and infrastructure spending. The Federal Reserve decision to raise rates has also helped banks. The new surge in home prices has also buoyed optimism for the mortgage business and banks profits thereto.
Source: BAC, AlphaStreet
Live From The Pit