Bank of America Adjusted Annual Profit Roughly Matches Pre-Crisis Record -- Earnings Review
January 17 2018 - 08:48AM
Dow Jones News
By Imani Moise
Bank of America Corp. (BAC) shares edged 0.6% higher to $31.42
during premarket trading after the bank reported mixed results for
its fourth quarter. Here's what you need to know:
EARNINGS: Bank of America reported higher-than-expected earnings
despite booking a hefty charge related to the new tax law. On an
as-reported basis, the bank earned 20 cents a share, which included
a 27-cents-a-share charge related to a write-down of deferred tax
assets. Analysts had expected earnings of 14 cents a share,
including the tax hit. On an adjusted basis, Bank of America earned
47 cents a share, compared with an estimate of 44 cents a
share.
REVENUE: Revenue increased 2% to $20.4 billion but missed
analysts' expectations of $21.53 billion. Higher interest rates
helped net interest income rise 11% during the quarter, but revenue
growth was partially offset by a 7% decline in noninterest income
driven by the impact of the Tax Cuts and Jobs Act and lower
mortgage banking income.
TAX HIT: The company recorded a $2.9 billion charge related to
the new tax law. Investors have shrugged off the charges at other
banks because the write-downs have been anticipated and are
expected to be outweighed by the benefits of corporate tax cuts
taking effect this year.
RECOVERY MILESTONE: Excluding the impact of the tax charge, Bank
of America reported a profit of $21.1 billion for 2017, a level not
seen since 2006, before the financial crisis, when it posted a
profit of $21.13 billion.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
January 17, 2018 08:33 ET (13:33 GMT)
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