Net income improved to $7.3 billion or $0.70 per share from $2.4 billion or $0.20 per share in the same period last year. On an adjusted basis, earnings grew 39%. Earnings growth in the quarter was helped by higher interest rates as well as benefits from the tax reform.
Also see: Bank of America Q4 2018 Earnings Transcript
Net interest income rose 7% to $12.3 billion from last year while noninterest income grew 16% to $10.4 billion. Average loans and leases rose to $934.7 billion from $927.8 billion last year while average deposits grew 4% to $1.3 trillion.
Earnings preview: Bank of America to benefit from trading in Q4
At the end of the quarter, total loans and leases amounted to $946.9 billion, up from $936.7 billion last year. Total deposits rose to $1.38 trillion from $1.30 trillion last year.
Bank of America recorded revenue increases across all its segments except for Global Markets where revenues dropped 5%, reflecting lower sales and trading revenue. The drop in sales and trading revenue, excluding net DVA, was mainly due to market volatility. Segment revenues in the quarter benefited primarily from higher net interest income.
Bank of America’s peer Goldman Sachs (GS) also reported its fourth quarter results today, beating revenue and earnings estimates for the period.