Bank of America released its financial earnings for Q4 2017 on Wednesday reporting a strong quarter. The bank reported a net income of $2.4 billion, and earnings per share of $0.20 for the quarter. Its net revenue increased 2 percent to $20.4 billion in Q4 2017 from $20.4 billion in the corresponding quarter last year.
Net interest income increased 11 percent to $11.5 billion reflecting benefits from higher interest rates and loan and deposit growth. However, its noninterest income decreased 7 percent to $9 billion due to the impact of the Tax Act and lower mortgage banking income, partially offset by higher asset management fees, investment banking revenues, and card income.
“Responsible growth delivered solid results in 2017. Pretax earnings rose 17 percent, and we continued to close in on our long-term return targets. We gained market share across our businesses while carefully managing credit, risk exposures, and expenses,” said Brian Moynihan, CEO at Bank of America.
The bank’s consumer banking business continued to post a solid growth with revenues rising 10 percent to $9 billion and loans and deposits rising 9 percent and 8 percent respectively. Its mobile banking active users increased 12 percent to 24.2 million, while the credit / debit spend went up 7 percent to $143 billion. The bank’s Merrill Edge brokerage assets were up 22 percent.
“We invested in technology, client engagement, and in our own team, including the $1,000 bonus we announced last month for 145,000 employees. We also shared our success with stakeholders through our high level of funding philanthropic initiatives, our 2 million employee volunteer hours, and our commitment to long-term shareholder value by returning nearly $17 billion in capital through common stock repurchases and dividends,” Moynihan said.
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