Edition: United Kingdom  
One News Page
“Probably the fastest-access news portal in the world”
> >

Bank of America falls in line with trend of strong US bank results

City A.M. Friday, 13 January 2017 ()
Bank of America falls in line with trend of strong US bank resultsBank of America Merrill Lynch (BoAML) today revealed an increase in revenue, income and earnings during the final quarter of last year.

*The figures*

Revenue excluding interest expense was up two per cent in the quarter, to *$20bn *(£16.4bn) from $19.6bn* *this time last year.

Net income jumped to *$4.7bn* from $1.4bn in the fourth quarter of 2015.The group generated net interest income of *$10.3bn*, up from $9.7bn in the final three months of last year.

Earnings per share jumped to *$0.40* from $0.27 - beating estimates of $0.38.

*Why it's interesting*

The bank, which sold its credit card company MBNA to Lloyds Banking Group at the end of last year, has continued the positive pattern set by its results for the third quarter, in which its earnings were much better than expected.

BoAML's strong results come in a week during which US banks are expected to report good numbers on the whole. It's the first institution to report since the Federal Reserve moved to increase interest rates in December.

Rival JP Morgan also reported good results today, with analysts predicting that the firms will continue to perform well. 

"The US banking sector has performed extremely well recently, driven by growing earnings and expectations that they will rise even higher," said Kerim Derhalli, chief executive of invstr.

"This suggests that the negative legacy of the financial crisis – bank fines and bad balance sheet assets – has diminished.

"As the business cycle progresses and the yield curve steepens, bank earnings will increase further. The prospect of de-regulation under a Trump presidency is likely to increase opportunities for banks to generate risk-based revenues once more."

*What Bank of America said*

“We had strong results in 2016 because our strategy is working," said chief executive Brian Moynihan.

"We are lending more and seeing historically low charge-offs, which is what responsible growth is all about. With strong leadership positions in our businesses against a backdrop of rising interest rates, we are well-positioned to continue to grow and deliver for our shareholders in 2017."
Share on
Share on
Post on 
Share by
Source: The Street - < > Embed

News video: Bank of America Posts Surge in Trading Revenue Thanks to Trump Trade

Bank of America Posts Surge in Trading Revenue Thanks to Trump Trade 02:49

Bank of America posted a double-digit increase in fourth quarter trading revenue on the heels of market volatility sparked by Donald Trump's presidential victory in November. Trading revenue rose 11% year-over-year to $2.91 billion. Fourth quarter results were mixed, however. The bank topped...

You Might Like

Other recent news in Business

Ditch the congestion charge for road pricing, LONDON Assembly tells mayorGOLDMAN SACHS predicts healthcare M&A flurry, helped by Donald Trump
VEGEMITE back in Australian ownership after A$460m Bega dealDEUTSCHE BANK slashes bonuses for senior staff
Goldman and CITIGROUP profits fail to cheer Wall StreetJOE BIDEN: Top 1% 'not carrying their weight'
Now it's CREDIT SUISSE's turn to sign off on its DoJ fine for $5.3bnMan Utd overtake REAL MADRID to become world's richest club
Sir ANDY MURRAY douses concerns over ankle injuryJANET YELLEN says slowly increasing interest rates "makes sense"


Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2017 One News Page Ltd. All Rights Reserved.  |  About us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Privacy Policy  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  Help  |  Contact us  |  DMCA / Content Removal
How are we doing? Send us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter   FIND us on Google+