Bank Of America Q4 Profit Beats On Loan Growth, interest income

by Ike Obudulu Last updated on April 15th, 2019,

New York City, USA : Bank of America (BAC) reported fourth-quarter net income of $7.3 billion, up 208% from prior year, driven by continued strong operating leverage and asset quality, as well as the benefit of tax reform impacting 2018. Fourth-quarter net income was up 39% adjusting for the impact of the Tax Act in prior year. Pretax income was $8.7 billion rose 41% (22% on an adjusted basis) from previous year. Earnings per share was $0.70, up 250% (49% on an adjusted basis). On average, 25 analysts polled by Thomson Reuters expected the company to report profit per share of $0.63 for the quarter. Analysts’ estimates typically exclude special items.

Fourth-quarter revenue, net of interest expense, increased 11% (6% on an adjusted basis) to $22.7 billion, led by net interest income, reflecting benefits from higher interest rates as well as loan and deposit growth. Analysts expected revenue of $22.45 billion, for the quarter. Average deposit balances rose $51 billion, or 4%, to $1.3 trillion.

For Consumer Banking business segment, fourth-quarter net income rose 52% to $3.3 billion. Loans were up 5% to $290 billion. Deposits were up 3% to $687 billion. For Global Wealth and Investment Management segment, fourth-quarter net income rose 43% to $1.1 billion. Loans increased 4% to $164 billion.

“We significantly improved our returns in the fourth quarter, with a 1.24% return on average assets and a 16.3% return on average tangible common shareholders’ equity. Each line of business contributed to these results. With a strong balance sheet, we’re ready to deliver again in 2019,” said Paul Donofrio, CFO.

Rivals JPMorgan Chase & Co (JPM.N) and Citigroup Inc (C.N) reported double-digit declines in bond trading revenue, citing the market downturn in December and wider credit spreads.


Ike Obudulu

Ike Obudulu

Versatile Certified Fraud Examiner, Chartered Accountant, Certified Internal Auditor with an MBA in Finance And Investments who has both worked for and consulted with some of the world's largest companies on main street and wall street in over 20 countries, Ike brings his extensive reporting and investigations experience to bear on his role as Chief Editor.

Leave a Reply