Bank of America and JPMorgan Chase released their latest earnings reports before opening bell this morning. Bank of America posted earnings of 40 cents per share, marking a 48% year over year increase from the year-ago quarter’s 27 cents per share. Revenue came in at $20 billion, a 2% year over year increase from $19.6 billion in the same quarter a year ago. Analysts had been expecting earnings of 38 cents per share and $20.87 billion in revenue.
JPMorgan Chase reported earnings of $1.71 per share on $23.4 billion in revenue, compared to the consensus estimates of $1.42 per share and $23.91 billion in revenue. The bank reported $1.32 per share in earnings and $23.75 billion in revenue in the year-ago quarter.
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Bank of America records solid growth
Bank of America’s net interest income grew 6% to $10.3 billion, while provision for credit losses fell to $774 million from $810 million a year ago. Net charge-offs fell to $880 million from $1.1 billion in the year-ago quarter. The net charge-off ratio fell to a historic low of 0.39%. Book value per share increased 7% to $24.04, while tangible book value per share grew 9% to $16.95.
The Consumer Banking segment recorded a $20.1 billion increase in loans and $55 billion increase in deposits. The Global Wealth and Investment Management division saw its total client balances grow $50.5 billion to surpass $2.5 trillion, while Global Banking deposits grew $10.3 billion. Global Banking loans increased $15.6 billion. Sales and Trading revenue reached $2.8 billion.
Shares of Bank of America edged lower by as much as 0.79% to $22.74 during premarket trading.
JPMorgan Chase also records solid growth
JPMorgan Chase’s average core loans grew 12%. The Consumer and Community Banking segment recorded $11.02 billion in revenue, compared to $11.22 billion in the year-ago quarter. The bank’s Corporate and Investment Bank segment’s net revenue grew to $8.5 billion from $7.07 billion a year ago. JPMorgan’s Commercial Banking net revenue increased to $1.96 billion from $1.76 billion in the year-ago quarter. Asset Management’s net revenue rose to $3.09 billion from $3.05 billion a year ago.
JPMorgan cut its provision for credit losses in the fourth quarter, reporting $864 million versus $1.25 billion in the year-ago quarter. The bank’s return on common equity grew to 11% from 9% in the previous year’s fourth quarter.
Shares of JPMorgan Chase edged upward by as much as 0.31% to $86.50 in premarket trades.