Bank of America has kicked off its US quarterly season, first among the banking giants to publish its accounts. The Charlotte, North Carolina-based institute reported better-than-expected profits on trading activity, buoyed by increased trading triggered by Donald Trump's surprise victory. In the three months to December, Bank of America posted net profits of $4,696 billion, 40 cents a share, up from $3,284 billion, 27 cents a share, in the same period a year ago and better than the 38 cents expected. by analysts. Revenues came in at $19,99 billion, up from $19,58 billion in the same period a year earlier, but below the $20,85 billion consensus forecast. For the full year 2016, net income saw a 13% growth to $16,2 billion.
On an adjusted basis, revenue was $20,22 billion, less than the $20,85 billion expected by analysts. For full 2016, Bank of America saw net profits rise from $15,836 billion to $17,906 billion, while revenue increased from $82,965 billion to $83,701 billion. In the fourth quarter, net income applicable to ordinary shareholders rose to $4,335 billion from $2,954 billion in the same period of 2015, while for the full year 2016 it was $16,224 billion, up 13% from $14,353 billion. billion in 2015.
The bank also plans to increase its stock buybacks for the first half of the year, from $2,5 billion to $4,3 billion. Revenue generated by trading activities, excluding accounting adjustments, rose 11% to 2,91 billion from 2,63 billion in the same period of 2015. Net interest income rose 6,3% to 10,29 billions of dollars.
Quarterly expenses fell 6,1% to $13,16 billion from $14,01 billion a year earlier, on the back of a cost-cutting plan by Chief Executive Officer Brian Moynihan, who turns seven this month leading the group. Over the summer, the CEO pledged to reduce annual expenses by another 5 billion dollars by 2018: to achieve this goal, the monthly figure must average around 13,25 billion.
