Bank of America reported better than expected fourth quarter earnings before the bell Tuesday and announced a $2.9 billion share buyback plan for Q1, the maximum allowed under Federal Reserve regulations. $BAC followed Citigroup $C JPMorgan Chase $JPM. Wells Fargo $WFC reporting
Bank of America reported better than expected fourth quarter earnings before the bell Tuesday and announced a $2.9 billion share buyback plan for Q1, the maximum allowed under Federal Reserve regulations. $BAC followed Citigroup $C JPMorgan Chase $JPM. Wells Fargo $WFC reporting
Bank of America Corporation NYSE: BAC Reported Earnings Before Open Tuesday
$0.59 beat $0.55 EPS Forecast and $20.10 billion Missed $20.70 Billion Forecast in Revenue
Earnings
Bank of America earnings for the fourth quarter were 59 cents per share, down 21.3% from the same period last year but 4 cents ahead of the Street consensus forecast. Group revenues fell 10.6% from last year to $20.1 billion just under analysts’ estimates of a $20.7 billion tally.
- Revenues from the bank’s fixed income and commodities unit fell 5% to $1.7 billion,
- Equities revenues were up 20% to a stronger-than-expected $1.3 billion,
Bank of America Corporation NYSE: BAC
Market Reaction: Close $32.77 ▼ 0.24 (-0.73%)
Highlights
“During 2020, we witnessed the dramatic effects of the health crisis on the economy and our company’s operations. In the fourth quarter, we continued to see signs of a recovery, led by increased consumer spending, stabilizing loan demand by our commercial customers, and strong markets and investing activity,” said CEO Brian Moynihan. “The latest stimulus package, continued progress on vaccines, and our talented teammates – who performed well helping their customers through this crisis – position us well as the recovery continues.”
The second-biggest U.S. lender after J.P. Morgan Chase is among the most sensitive of large banks when it comes to changes in interest rates, according to analysts, It is also the most exposed to the US economy.
Source: BAC, AlphaStreet
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