The Bank of America broadcasted the results of their fourth quarter earnings for 2016. The banks have made a net income of $4.7 billion; this makes a golden year for banks after the presidential elections. BofA’s peers such as JP Morgan Chase & Co. and Wells Fargo & Co. are also expected to release their Q4 2016 earnings today, Friday the 13th.
The Bank of America sees a very good year for consumer banking last 2016; their loans were up $20.1 billion and deposits were at $55 billion. The bank’s brokerage assets increased 18 percent; for their innovating platform for mobile, the company saw a tremendous increase of active users reaching a total of 21.6 million in numbers which were a total increase of 16 percent. Lastly from the bank’s consumer banking, their total credit card and debit card spending went up by 6%.
According to CEO Brian Moynihan, “We had strong results in 2016 because our strategy is working. We are lending more and seeing historically low charge-offs, which is what responsible growth is all about. Revenue was up modestly, but EPS grew by 15% as we continued to manage our expenses and create operating leverage. With strong leadership positions in our businesses against a backdrop of rising interest rates, we are well-positioned to continue to grow and deliver for our shareholders in 2017.”
BofA’s Q4 16 In The Global Scene
On the global banking scope, the Bank of America’s loans were at $15.6 billion while deposits, on the other hand, were at $10.3 billion. The return on average allocated capital or ROAAC saw a positive 2016 with an increase of a total of 17 percent; while the bank’s total corporation investment banking fees were at $1.2 billion. For the bank’s global wealth and investment management, BofA’s global total client balance saw a jump of an estimated $50.5 billion to more than $2.5 trillion, while loans were at $9.1 billion. The pretax margin also had a good run garnering an improvement of 23 percent, while the long-term asset under management or AUM is at $18.9 billion.
Leaning on the global markets, the bank’s sales and trading revenues of $2.8 billion including negative net debt valuation adjustment (DVA) of $101 million. While excluding the net DVA, sales and trading all-in-all had a tremendous 2016 with revenues increasing to 11 percent, fixed income is also up by 12 percent, and the equities also soared up to 7 percent.
In summary, Bank of America’s Q4 2016 is as excellent as analyst reported, the net income growing to $4.7 billion, EPS of $0.40, while the increases in planned common stock purchased for the first-half of the year is up from $1.8 billion to a whopping $4.3 billion.
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