Bank of America Corporation (NYSE: BAC) declined more than 1% on Friday as the firm disclosed a decline in fourth-quarter earnings, primarily due to significant one-time charges.
Bank of America (NYSE: BAC) reported a substantial decrease in net income applicable to common shareholders for the fourth quarter. The figures plummeted to $2.84 billion or $0.35 per share. This marks a notable drop compared to $6.90 billion or $0.85 per share in the same quarter of the past year. The adjusted net income for the quarter, excluding certain items, came in at $0.70 per share.
The consensus of 18 analysts surveyed by Thomson Reuters expected the company to announce earnings of $0.63 per share for the quarter. Analysts’ estimates typically exclude special items.
The provision for credit losses saw a modest increase to $1.10 billion, compared to $1.09 billion in the previous year.
The total revenue, excluding interest expense, declined by 10 percent to $21.96 billion from $24.53 billion in the prior year quarter. Wall Street had estimated revenues of $23.74 billion for the quarter.
Net interest income also took a hit, standing at $13.95 billion, down 5% from the previous year. This decline was attributed to elevated deposit costs and reduced deposit balances, which outweighed the impact of higher asset yields.
The non-interest income decreased to $8.01 billion from $9.85 billion the previous year. This decline was driven by higher asset management and investment banking fees, outweighed by lowered income from market-making and similar activities.
Non-interest expense rose by 14% to $17.73 billion from last year.
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