Bank of America Corp (NYSE: BAC) stock fell 1.81% on January 15th, 2020 (Source: Google finance) after the company reported the net income of $6.75 billion compared with $7.04 billion, in the year-ago period, for the fourth quarter of FY 19. Consumer banking revenue declined by 4% to $9.5 billion, while combined credit/debit card spend rose 6%. The stock slightly recovered by over 0.2% on January 16th, 2020 (As of 9:49 am GMT-5; Source: Google finance)
Global markets revenue grew 6% to $3.4 billion, due to the sales and trading business. Fixed income, currency and commodities revenue grew 25% to $1.8 billion, due to the improvement in mortgages, while equities revenue fell 4% to $1.0 billion driven by lower client activity in derivatives. Overall, in FY 19 the bank delivered 3% rise in the net income to $29 billion.
Moreover, when compared to the end of the third quarter, the balance sheet was relatively flat at $2.4 trillion, as growth of both loans and securities were offset by lower Global Market assets. Deposits grew $42 billion, liquidity improved on the back of average Global Liquidity Sources benefits from deposit growth. Shareholders’ equity however fell $4 billion, due to the return of excess capital. In Q4, the bank had returned $9.1 billion in capital through net share repurchases and dividends, which exceeded the $7 billion earned. OCI declined by about $1 billion, notable book value per share of $27.32 has improved 9% from Q4 ’18.
BAC in the fourth quarter of FY 19 has reported 6 percent increase in the adjusted earnings per share of 74 cents, beating the analysts’ estimates for the adjusted earnings per share of 68 cents, according to the FactSet consensus. The company had reported 1.4 percent fall in the adjusted revenue to $22.35 billion in the fourth quarter of FY 19, beating the analysts’ estimates for revenue of $22.22 billion.
Meanwhile, Erica has crossed 10 million total users and completed about 100 million requests since its launch, with 38% penetration of active BAC mobile users. 27% of total deposits are now coming from mobile, and over 50% of the bank’s clients have gone completely paperless, which enhanced BAC efficiency and their experience.
For fiscal 2020, BAC expects NII in Q1 to be lower than Q4, as the benefits of loan and deposit growth will be more than offset. The full year expense is expected to be in the low $53 billion range this year