Bank of America on Wednesday topped analysts’ estimates for profit on record asset management and investment banking fees and as the firm released $851 million in reserves.
Bank of America Q4 net income rose 28% to $7.0 billion, or $0.82 per diluted share, reflecting strong operating leverage as revenues grew faster than expenses. Revenue, net of interest expense, increased 10% to $22.1 billion.
Provision for credit losses improved by $542 million to a benefit of $489 million, driven by asset quality and macroeconomic improvements, partially offset by loan growth; net reserve release of $851 million.
Noninterest expense rose 6% to $14.7 billion, driven by higher revenue-related incentive compensation, partially offset by lower COVID-19 related costs; positive operating leverage of 4%.
Average loan and lease balances up $10 billion to $945 billion; ending balances up $51 billion to $979 billion, led by strong commercial loan growth as well as higher card balances Average deposits up $280 billion, or 16%, to $2.0 trillion.
The stock jumped over 2% in premarket trading.
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