From NBCUniversal:

Shares of Bank of America dropped 2% in premarket trading after the company reported fourth-quarter earnings that fell below expectations. Earnings per share were 70 cents, compared to the expected 68 cents, while revenue came in at $22 billion. However, net income for the quarter fell to $3.1 billion, down more than 50% from the prior year.

The bank was hit by a $1.6 billion pretax charge related to the transition away from the London Interbank Offered Rate and a $2.1 billion fee charged by the Federal Deposit Insurance Corp. CEO Brian Moynihan cited solid fourth-quarter and full-year results, with all businesses achieving strong organic growth and record client activity.

Bank of America posted a $1.1 billion provision for credit losses, up $12 million from the same quarter last year. Net interest income decreased 5% to $13.9 billion due to higher deposit costs and lower balances, while revenue from consumer banking dipped 4% to $10.3 billion. Sales and trading revenue increased by 3% to $3.6 billion.

Despite expectations of benefiting from higher interest rates, the bank underperformed its peers due to low-yielding, long-dated securities purchased during the Covid-19 pandemic. Bank of America stock is down more than 1% this year after a 1.7% gain in 2023, while the S&P 500 financial sector gained 10% last year.



Read more: Bank of America (BAC) earnings 4Q 2023