Categories AlphaGraphs, Earnings, Finance

Bank of America (BAC) Q4 earnings beat Street view; revenues drop

Bank of America (NYSE: BAC) reported stronger-than-expected earnings for the fourth quarter of 2019, despite a decline in revenues amid broad-based weakness. Shares of the financial services giant gained slightly during Wednesday’s premarket session, immediately after the announcement.

Bank of America (BAC) Q4 earnings beat Street view; revenues drop

Total revenue, net of interest expense, decreased 1% to $22.3 billion from $22.7 billion in the fourth quarter of 2018. The top-line matched the market’s prediction.

Segment-wise Revenue

Segment-wise, Consumer Banking revenues decreased 4%, mainly due to lower net interest income and the absence of a modest one-time gain recorded in the prior-year quarter. Revenues at the Global Wealth and Investment Management unit declined by 2%.

There was a 1% dip in Global Banking revenues during the quarter when higher leasing-related revenue and investment banking fees were more than offset by lower net interest income. Meanwhile, Global Markets revenues moved up 6%.

During the three-month period, net interest income dropped 3% hurt by lower interest rates, which was partially offset by loan and deposit growth. Book value per share grew 9% annually to $27.32. Average loan and lease balances advanced 6% to $936 billion, with consumer loans and commercial loans growing 7% and 6% respectively. At $1.4 trillion, average deposit balances were up 5%.

Earnings Beat

Net income was $7 billion or $0.74 per share in the December quarter, compared to $7.3 billion or $0.70 per share last year. Analysts were looking for a lower profit.

“In a steadily growing economy marked by solid client activity, our teammates produced another strong quarter and year, allowing us to increase investments in our customers, communities, and employees, while keeping a close eye on expenses. We also delivered for shareholders in 2019 by returning a record $34 billion in excess capital through dividends and share repurchases,” said CEO Brian Moynihan.

Also Read:  ServiceNow (NOW): Q4 2019 Earnings Snapshot

Capital Return

In the whole of 2019, the management returned $34 billion to shareholders through dividends and share repurchases.

Bank of America shares started 2020 on a positive note and climbed to the highest level since the recession. The stock has gained 21% in the past twelve months.

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips

Most Popular

Vail Resorts (MTN) can reward investors once it gets past market crisis

The recent travel restrictions have taken a heavy toll on the tourism industry, leaving almost all destinations deserted. Vail Resorts Inc. (NYSE: MTN), a leading operator of mountain ski resorts,

The coming months will prove to be a testing time for Boeing (BA)

Shares of Boeing Co. (NYSE: BA) were up 13% in afternoon hours on Monday. The stock is down 63% from its 52-week high of $391. As the aviation industry suffers

Wayfair (W) stock looks less attractive despite low price, thanks to market selloff

Shareholders of online furniture retailer Wayfair Inc. (NYSE: W) have been speculating about their returns for long, with the stock not making any meaningful gains in the past several months.

Top