Bank of America (NYSE: BAC) reported better-than-expected adjusted fourth quarter earnings Wednesday after a jump in loan growth offset a drop in fixed-income trading.
The bank also posted a charge of $2.9 billion related to the new tax law, and revenue fell slightly short of expectations.
The bank reported in fourth-quarter, excluding the tax bill-related items:
Adjusted earnings per share of 47 cents, versus analyst expectations of 44 cents from analysts. Adjusted revenue of $21.4 billion, versus expectations of $21.531 billion.
According to CEO Brian Moynihan, “We gained market share across our businesses while carefully managing credit, risk exposures, and expenses.
“We invested in technology, client engagement, and in our own team, including the $1,000 bonus we announced last month for 145,000 employees.”
Net interest income rose 11% to $11.5 billion in the fourth quarter, helped by higher interest rates and loan and deposit growth. Net charge-offs rose to $1.2 billion, as a release put it, “primarily driven by a single-name non-U.S. commercial charge-off totaling $292 million.”
Bank of America said in a December filing it expects a $3-billion hit to fourth quarter results as a result of President Donald Trump’s signature on the Tax Cuts and Jobs Act. And in early December, Moynihan said trading revenues were tracking for a 15% decline in the fourth quarter from the same period last year.
Bank of America shares docked 48 cents in price, or 1.5%, to $30.76 mid-morning Wednesday, having climbed nearly 36% over the last 12 months.