Bank of America Corp. (NYSE: BAC)
Bank of America Corp. shares rose 4% in early premarket trading Wednesday, after the company reported a 39% profit jump on an adjusted basis.
The bank, which is the second largest in the U.S. by assets, was boosted by lower taxes and steady interest rates last year. BofA said the amount of money it generated from interest climbed more than 6% in 2018.
In the final hour of regular trading shares of the company added $2.03, or 7.66% to $28.58. The stock, which suffered a massive sell-off in December, has ran up more than 15% year to date.
The bank reported a record fourth-quarter profit of $7.28 billion, or $0.70 per share, compared with $2.37 billion, or $0.20 per share in the same period last year. On an adjusted basis, quarterly earnings at the Charlotte, N.C.-based bank, rose to $7.28 billion from $5.3 billion last year. Analysts had called for adjusted earnings of $0.63 per share, based on Refinitiv data.
Total revenue, net of interest expense, came to $22.74 billion in the quarter, compared with $20.44 billion a year ago and above analysts’ estimate of $22.35 billion. Noninterest income grew rose from $8.97 billion to $10.43 billion above forecasts of $10.12 billion. Net interest income jumped from $11.46 billion last year to $12.30 billion also beating Wall Street expectations of $12.20 billion.
Fixed-income trading generated revenues of $1.45 billion, down 15% from the earlier-year period. The company posted growth in its Global Wealth and Investment Management, Global Banking, and Consumer Banking segments.
Bank of America CEO Comments
“I am proud of our teammates who produced record earnings for the quarter and the year by driving responsible growth. Our teammates worked for our customers and delivered solid loan and deposit growth, and other activity, while managing risk well. Operating leverage based on disciplined expense management while investing in our future, solid asset quality, and loan and deposit growth drove this quarter’s results,” commented Brian Moynihan, Chairman and Chief Executive Officer
Bank of America Corp. Profile
Bank of America Corp. is a bank and financial holding company, which engages in the provision of banking and nonbank financial services. It operates through the following segments: Consumer Banking, Global Wealth and Investment Management, Global Banking, Global Markets, and All Other.
The Consumer Banking segment offers credit, banking, and investment products and services to consumers and small businesses. The Global Wealth and Investment Management provides a full set of investment management, brokerage, banking, and retirement products.
The Global Banking segment deals with lending-related products and services, integrated working capital management and treasury solutions to clients. The Global Markets segment includes sales and trading services, as well as research, to institutional clients across fixed-income, and equity businesses.
The All Other segment consists of asset and liability management activities, equity investments, non-core mortgage loans and servicing activities, liquidating businesses, and residual expense allocations. The company was founded by Amadeo Peter Giannini in 1904 is headquartered in Charlotte, NC. – CNN Money