Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

Bank of America sees fourth-quarter profits nearly double on markets upswing since the US election

Friday, January 13, 2017 6:49
% of readers think this story is Fact. Add your two cents.

The Trump effect helped Bank of America Corp. (NYSE:BAC) to nearly double its fourth-quarter profits, reflecting the upswing in market activity in the wake of the US presidential election.

The US bank – the second biggest in the country by assets – said its net income rose by 46,8% to $4.34 billion in the three months ended December 31, up from $2.95 billion a year earlier.

BofA saw its earnings per share jump to 40 US cents, up from 27 US cents at the same stage in 2015, beating analysts forecasts.

It added that total sales and trading revenue increased by 11% in the fourth quarter, spurred by a surge in activity in stock and bond markets following Donald Trump’s surprise victory on November 8.

Rates boost …

BofA is the first big US bank to report earnings since the Federal Reserve raised interest rates for only the second time since 2006 on December 14.

In its quarterly statement, the lender’s chief financial officer, Paul Donofrio said: “While the recent rise in interest rates came too late to impact the results, we expect to see a significant increase in net interest income in the first quarter of 2017,”

The largest US bank, JPMorgan Chase & Co.(NYSE:JPM), and the country’s biggest mortgage lender, Wells Fargo & Co. (NYSE:WFC) will also report results later on Friday.

Shares in the banking sector have rallied strongly since Trump’s victory in anticipation that his policies will boost the economy as well as loosen regulations that have restrained them in recent years.

Banks will also benefit if, as expected, the Fed raises interest rates three times this year.

Story by ProactiveInvestors


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global


Top Alternative




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.