Bank of America Merrill Lynch’s fourth-quarter earnings beat Wall Street’s profit forecasts but missed on revenue as lower interest rates weighed on several of its divisions.
Revenue and net income fell across the consumer banking, global wealth and investment management, and global banking divisions.
The global markets segment posted higher revenue and net income, fueled by a 7% rise in sales and trading revenue.
The shares rose as much as 0.9% in premarket trading before paring their gains.
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Bank of America Merrill Lynch reported fourth-quarter earnings on Wednesday, besting the profit forecasts of analysts surveyed by Bloomberg, but falling slightly short of their revenue expectations.
The nation’s second-biggest lender after JPMorgan Chase revealed a 1.7% fall in revenue to $22.3 billion, and a 4% drop in net income to $7 billion. The decline stemmed from a 3% drop in net interest income, fueled by lower interest rates.
Bank of America shares rose as much as 0.9% in premarket trading before paring their gains.
Here are the key numbers:
Net income: $7.0 billion versus the $6.31 billion estimate
Earnings per share: $0.74 versus the $0.69 estimate
Revenue: $22.3 billion versus the $22.4 billion estimate
“The company managed well through a period of transition from rising …read more
Source:: Businessinsider – Finance