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Shares of Bank Of America Jumped By 7% Following The Record Profits Report

Recently, BofA (Bank of America) reported better-than-expected revenue and profit for the fourth quarter, determined by a solid performance from its customer-banking business and fewer taxes. The outcomes surged the bank’s shares up by 7.16%. As per to Refinitiv, in the previous quarter, the bank earned profits of 73 cents per share compared to analysts expectations 63 cents per share. The bank’s revenue was $22.7 Billion compare to a forecast of $22.397 Billion. BofA’s quarterly revenue tripled to $7.3 Billion, which is a record. The bank also stated that it purchased $26 Billion in common stock.

In a statement, Brian Moynihan—BofA CEO—said, “With the trillions of dollars of customer transactions we do and from the stable assurance and action of our commercial clients and small business, we see a healthy business and consumer climate driving a strong economy.” On a yearly basis, BofA’s customer banking business profit increased by almost 52% to $3.3 Billion. Loans increased by almost 1.9%, while debit and credit card spending grew by 6%. The bank’s net interest profit—which is a widely tracked measure of profitability for banks—strike 2.48% in the fourth quarter, whereas, analysts’ survey by StreetAccount anticipated 2.45%. However, BofA’s fixed-income trading disappointed Wall Street. The fixed-income trading business revenue was dropped by 15% to $1.45 Billion, under projected sales of $1.62 Billion.

Lately, BofA was also in news along with Citigroup as it backed Lampert’s $5.2 Billion Sears agreement. According to a regulatory filing, Edward Lampert—Sears Chairman—would finance his captivating $5.2 Billion offer to recover the retailer partly with $850 Million from a fresh asset-based loan. The agreement by Lampert’s ESL Investments hedge fund would also be backed by ESL’s forbearing $1.3 Billion of Sears’ debt that it bears and with $621 Million of present senior debt that is being overpowered to the post-bankruptcy company.

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