Bank of America Corp. reports financial results for fiscal Q4

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Jan 19, 2021
  • Bank of America Corp. reports £4.04 billion of net income in Q4.
  • The investment bank's revenue slides 10.1% in the fourth quarter.
  • Bank of America authorised £2.13 billion of stock buyback program.

Bank of America Corp. (NYSE: BAC) said on Tuesday that its profit in the fiscal fourth quarter topped analysts’ estimates. But revenue, it added, missed estimates as global markets segment performed weaker than expected in Q4.

Bank of America shares were reported close to 1.5% down in premarket trading on Tuesday. The stock is currently trading at £24 per share versus a low of £13.25 per share in March 2020.

Bank of America Corp’s Q4 financial results versus analysts’ estimates

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Bank of America said that its net income in the fourth quarter came in at £4.04 billion that translates to 43.36 pence per share. In the same quarter last year, its net income stood at a higher £5.14 billion or 54.38 pence per share. The investment bank authorised £2.13 billion of stock buyback programme on Tuesday.

At £14.77 billion, total revenue in Q4 printed 10.1% lower than last year. According to FactSet, experts had forecast the company to record a higher £15.12 billion of revenue. Their estimate for per-share earnings stood at a lower 40.42 pence. In the prior quarter (Q3), Bank of America Corp had registered a 10.8% decline in its revenue.

The American multinational said that its net income recorded a 15.5% annualised decline in the recent quarter but still came in marginally higher than the analysts’ anticipation. Consumer banking revenue also topped estimates despite a 13.4% year over year decline. Global markets revenue, on the other hand, jumped 14.1% but still missed expectations.

Other prominent figures in Bank of America’s earnings report

Other prominent figures in Bank of America’s earnings report on Tuesday include a 30% increase in equities revenue and a 5% decrease in FICC (fixed income, currencies, and commodities) revenue. Revenue from global wealth and investment management segment saw a decline that matched forecasts while global banking revenue contracted less than what analysts had anticipated.

CEO Brian Moynihan commented on the quarterly update on Tuesday and said:

“In the fourth quarter, we continued to see signs of a recovery, led by increased consumer spending, stabilising loan demand by our commercial customers, and strong markets and investing activity.”

Bank of America Corp. halted political action committee spending decision last week. The investment bank performed fairly downbeat in the stock market last year with an annual decline of roughly 15%. At the time of writing, it is valued at £830 million and has a price to earnings ratio of 16.31.

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