Bank of America (NYSE:BAC)
Historical Stock Chart
2 Months : From Dec 2019 to Feb 2020
By Ben Eisen
Bank of America Corp. said Wednesday that fourth-quarter profit fell 4%.
The second-largest U.S. bank by assets said it earned $6.99 billion in the fourth quarter, down from $7.28 billion a year earlier. Per-share earnings were 74 cents, more than the 68 cents predicted by analysts polled by FactSet.
The bank had revenue of $22.35 billion, down from $22.68 billion. Analysts had expected $22.22 billion.
Bank of America's shares rose 43% in 2019, topping the broader S&P 500, as investors bet on a continued economic expansion that is boosting big consumer banks. Shares have risen slightly to start 2020.
The Charlotte, N.C.-based lender particularly benefited from the short-lived rise in interest rates, when the Federal Reserve raised rates nine times between late 2015 and late 2018. That was because the bank was able to charge borrowers more interest without having to significantly increase payouts to depositors.
But now the Fed has reversed course and cut rates three times in recent months, forcing the bank to adjust its businesses. Bank of America paid 0.58% on U.S. interest-bearing deposits in the fourth quarter, down from 0.63% a year earlier.
Net interest income fell 2.9% from the year ago period. Noninterest income, which is less dependent on rates, rose 0.4%
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(END) Dow Jones Newswires
January 15, 2020 07:20 ET (12:20 GMT)
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