AIRLINK 79.41 Increased By ▲ 1.02 (1.3%)
BOP 5.33 Decreased By ▼ -0.01 (-0.19%)
CNERGY 4.38 Increased By ▲ 0.05 (1.15%)
DFML 33.19 Increased By ▲ 2.32 (7.52%)
DGKC 76.87 Decreased By ▼ -1.64 (-2.09%)
FCCL 20.53 Decreased By ▼ -0.05 (-0.24%)
FFBL 31.40 Decreased By ▼ -0.90 (-2.79%)
FFL 9.85 Decreased By ▼ -0.37 (-3.62%)
GGL 10.25 Decreased By ▼ -0.04 (-0.39%)
HBL 117.93 Decreased By ▼ -0.57 (-0.48%)
HUBC 134.10 Decreased By ▼ -1.00 (-0.74%)
HUMNL 7.00 Increased By ▲ 0.13 (1.89%)
KEL 4.67 Increased By ▲ 0.50 (11.99%)
KOSM 4.74 Increased By ▲ 0.01 (0.21%)
MLCF 37.44 Decreased By ▼ -1.23 (-3.18%)
OGDC 136.70 Increased By ▲ 1.85 (1.37%)
PAEL 23.15 Decreased By ▼ -0.25 (-1.07%)
PIAA 26.55 Decreased By ▼ -0.09 (-0.34%)
PIBTL 7.00 Decreased By ▼ -0.02 (-0.28%)
PPL 113.75 Increased By ▲ 0.30 (0.26%)
PRL 27.52 Decreased By ▼ -0.21 (-0.76%)
PTC 14.75 Increased By ▲ 0.15 (1.03%)
SEARL 57.20 Increased By ▲ 0.70 (1.24%)
SNGP 67.50 Increased By ▲ 1.20 (1.81%)
SSGC 11.09 Increased By ▲ 0.15 (1.37%)
TELE 9.23 Increased By ▲ 0.08 (0.87%)
TPLP 11.56 Decreased By ▼ -0.11 (-0.94%)
TRG 72.10 Increased By ▲ 0.67 (0.94%)
UNITY 24.82 Increased By ▲ 0.31 (1.26%)
WTL 1.40 Increased By ▲ 0.07 (5.26%)
BR100 7,506 Increased By 12.9 (0.17%)
BR30 24,683 Increased By 124.5 (0.51%)
KSE100 72,043 Decreased By -8.6 (-0.01%)
KSE30 23,749 Decreased By -58.8 (-0.25%)
Business & Finance

Bank of America profit beats estimates on trading strength

  • Net income applicable to common shareholders fell to $5.21 billion, or 59 cents per share, for the quarter ended Dec. 31 from $6.75 billion, or 74 cents per share.
  • Reported a 13% fall in consumer banking revenue to $8.2 billion,
Published January 19, 2021

Bank of America Corp posted a drop in fourth-quarter profit on Tuesday that still topped Wall Street expectations as strength in its sales and trading business offset weakness in its consumer banking unit.

Net income applicable to common shareholders fell to $5.21 billion, or 59 cents per share, for the quarter ended Dec. 31 from $6.75 billion, or 74 cents per share, a year earlier.

Analysts on average had expected a profit of 55 cents per share, according to the IBES estimate from Refinitiv.

The second-largest US bank by assets, seen as an economic bellwether, reported a 13% fall in consumer banking revenue to $8.2 billion, citing lower rates and a fall in credit card activity.

Lower interest rates have limited how much banks can charge for their lending services at the same time fiscal stimulus program and flagging consumer confidence has softened loan demand.

Net interest income at the bank, a key measure of how much it can make from lending, sank 16%. The bank reported a 10% fall in overall revenue, net of interest expense, to $20.1 billion.

The bank relies on higher interest rates to drive its profit growth as it has a large pool of deposits and rate-sensitive mortgage securities.

In a sign of confidence in the economic recovery, however, the bank released $828 million from its credit reserves for bad loans after adding more than $8 billion through the first three quarters of the year.

"The latest stimulus package, continued progress on vaccines ... position us well as the recovery continues," Chief Executive Officer Brian Moynihan said.

The bank's sales and trading unit proved a bright spot, with revenue rising to $3 billion from $2.8 billion a year earlier, mirroring peers JPMorgan Chase & Co and Citigroup Inc .

Separately, the second-largest US bank said its board approved a $3.2 billion share repurchase program in the first quarter after getting a green light from regulators to resume buybacks last month.

Comments

Comments are closed.