Bank of America announced its fourth-quarter results, posting a 28% drop in net income to $5.5 billion in the quarter, or $0.59 per share, but beating the $0.55 estimate analysts expected, according to a press release.
Revenue dropped 10% to $20.1 billion versus an estimated $20.7 billion, which was attributed to historically low interest rates. higher brokerage service fees and a fall in credit card activity that affected its consumer banking business. Non-interest expenses for the bank rose 5% to $13.9 billion, driven by higher net COVID-19 costs.
“In the fourth quarter, we continued to see signs of a recovery, led by increased consumer spending, stabilizing loan demand by our commercial customers and strong markets and investing activity,” Brian Moynihan chairman and CEO said in the release.
Bank of America’s shares climbed 1% to $33.35 in pre-market trading after its $2.9 billion stock buyback announcement.
The firm said it released reserves of $828 million and provision for credit losses in the final quarter dropped to $53 million, indicating public confidence in economic recovery.