Latest Videos

{{ currentStream.Name }}

Related Video

Continuous Play:
ON OFF

The information you requested is not available at this time, please check back again soon.

More Video

Jan 15, 2020

BofA joins Wall Street's trading comeback, consumer unit slips

Bank of America beats, Goldman Sachs misses

VIDEO SIGN OUT

Security Not Found

The stock symbol {{StockChart.Ric}} does not exist

See Full Stock Page »

Bank of America Corp.’s traders bounced back with their peers.

Trading revenue climbed 13 per per cent to US$2.86 billion, beating analysts’ US$2.76 billion estimate, helped by fixed-income activity. The fourth-quarter results echo those of JPMorgan Chase & Co., which posted a record performance in bond trading Tuesday, and Citigroup Inc., where debt trading jumped by more than double what analysts had forecast.

The biggest U.S. lenders ended 2019 on a high note, buoyed by a strong U.S. economy, resilient consumer spending and a robust labor market. For now, they’ve also weathered major challenges including Federal Reserve interest-rate cuts, expectations of slowing growth, geopolitical tensions and global trade disputes.

“We enter 2020 with momentum,” Chief Executive Officer Brian Moynihan said in a statement.

Net income in Bank of America’s consumer division slid 9.7 per cent to US$3.11 billion as interest income fell. Firm-wide, net interest income -- revenue from customers’ loan payments minus what the company pays depositors -- fell 2.9 per cent to US$12.1 billion in the fourth quarter, matching the average estimate in a Bloomberg survey.

Bank of America’s investment-banking fees rose 9.3 per cent from a year earlier after a blockbuster third quarter. The Charlotte, North Carolina-based company’s investment-banking division continued its turnaround under Matthew Koder.

Bank of America shares rose 0.9 per cent to US$35.65 at 7 a.m. in early trading in New York. They rose 43 per cent last year, compared with a 32 per cent increase for the 24-company KBW Bank index.

Also in the fourth-quarter results:

  • The bank’s efficiency ratio, a measure of profitability, was 59 per cent, compared with 66 per cent in the third quarter.
  • Net income fell 3.9 per cent to $6.99 billion as the firm generated a 11 per centreturn on equity. Earnings per share totaled 74 cents a share, beating the 69-cent estimate of 13 analysts in a Bloomberg survey.