Bank of America Corp (NYSE:BAC) released its latest earnings report before opening bell this morning. Bank of America Q4 2017 earnings came in at 47 cents per share on an adjusted basis, while revenue amounted to $20.4 billion, net interest expenses. Consensus estimates were 45 cents per share and $21.49 billion in revenue. In the same quarter a year ago, the firm reported $20 billion in revenue and 39 cents per share in earnings.
Bank of America Q4 2017 earnings
Including a charge of 27 cents per share or $2.9 billion in connection with tax reform, Bank of America Q4 2017 earnings amounted to 20 cents per share.
Net interest income rose 11% year over year to $11.5 billion, driven by higher interest rates and growth in loans and deposits, although it came up just shy of consensus at $11.55 billion. Non-interest income fell 7% to $9 billion due to impacts from the tax reform bill and lower mortgage banking income, although asset management fees, investment banking revenues and card income grew, partially offsetting those impacts.
Warren Buffett’s Annual Letter: Mistakes, Buybacks and Apple
Warren Buffett published his annual letter to shareholders over the weekend. The annual update, which has become one of the largest events in the calendar for value investors, provided Buffett's views on one of the most turbulent and extraordinary years for the financial markets in recent memory. Q4 2020 hedge fund letters, conferences and more Read More
“We gained market share across our businesses while carefully managing credit, risk exposures, and expenses,” Chief Executive Brian Moynihan said in a statement about the Bank of America Q4 2017 earnings release. “We invested in technology, client engagement, and in our own team, including the $1,000 bonus we announced last month for 145,000 employees.”
Bank of America records higher investment banking fees
Consumer banking revenue rose to $8.95 billion from $8.11 billion a year ago, while global banking revenue rose 10% to $5 billion, driven by a 4% increase in loans and a 5% increase in deposits. Firmwide investment banking fees grew 16% to $1.4 billion.
Global wealth and investment management revenue increased 7% to $4.7 billion. Total client balances grew 10% to $2.75 trillion, driven by growth in market valuations grew assets under management flows.
Adjusted global markets revenue ticked down to $3.51 billion from $3.57 billion a year ago. The consensus was $3.13 billion. Sales and trading revenue tumbled 10% year over year to $2.5 billion, while fixed income, currencies and commodities revenue fell 13% on the back of low volatility and client activity in macro products.
Following the Bank of America Q4 2017 earnings release, the firm’s stock ticked higher in premarket trades, climbing by as much as 0.26% to $31.32.