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Bank of America Q4 Earnings

BANK OF AMERICA


Bank of America reported its fourth-quarter results on January 12th, 2024, which showed declined earnings and heavy fees placed on the company.


The financial institution faced several challenges in Q4, including lower deposit balances, high deposit costs, and higher noninterest expenses. Net income fell to $3.1 billion, or $0.35 per diluted share, a major drop from $7.1 billion reported a year ago. Total revenue of $22.1 billion fell below Wall Street’s estimate for the first time in two years and was 10% less than the year prior.


In addition, it lost $1.6 billion in a pre-tax charge from the discontinuation of the Bloomberg Short-Term Bank Yield Index. The report also included a $2.1 billion fee charged by the FDIC, related to the collapses of Silicon Valley Bank and Signature Bank.


Financial achievements include a 9% rise in book value per share to $33.34, where BVPS is based on the balance sheet while market value is based on the share price. Tangible book value per share rose 12% to $24.46, TBVPS displaying the value of the bank’s tangible assets divided by its (current) outstanding shares.


Business segment highlights included positives in global banking as well as global markets. In global banking, total investment banking fees were up 7%, and in client activity, average deposits increased 5%. In global markets, sales, and trading revenue was up 3%, and there were zero days of trading losses in 2023.


Shares fell Friday amid declining revenue and hefty charges. BAC stock is down 4.96% this year after a 1.7% gain in 2023.


 
 
 

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