Bank Of America Q4 Net Income Rises; Revenue, Net Of Interest Expense, Up 11%

(RTTNews) - Bank of America (BAC) reported that its fourth quarter net income to shareholders totaled $6.90 billion, or $0.85 per share compared with $6.77 billion, or $0.82 per share, prior year. On average, 22 analysts polled by Thomson Reuters expected the company to report profit per share of $0.77, for the quarter. Analysts' estimates typically exclude special items.

Pretax income was up 1% to $7.9 billion impacted by a reserve build compared to a reserve release in last year. Pretax, pre-provision income increased 23% to $9.0 billion.

Revenue, net of interest expense, was $24.5 billion, up 11% from prior year. Analysts on average had estimated $24.33 billion in revenue.

Net interest income was $14.7 billion, up 29% driven by benefits from higher interest rates, including lower premium amortization expense, and solid loan growth. Noninterest income was $9.9 billion, down 8%, as declines in investment banking and asset management fees, as well as lower service charges, more than offset higher sales and trading revenue.

Provision for credit losses was $1.1 billion compared to a benefit of $489 million, previous year. The Group recorded net reserve build of $403 million in fourth quarter, primarily driven by loan growth and a dampened macroeconomic outlook.

Shares of Bank of America were down almost 3% in pre-market trade on Friday.

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