Before the opening bell on Wednesday, Bank of America (BAC
) reported its fourth quarter earnings, posting higher net income and revenue than last year’s Q4 results.
BAC Earnings in Brief
Bank of America posted quarterly revenues of $21.7 billion, up significantly from last year’s Q4 revenues of $18.9 billion. The company’s net income was also up considerably, coming in at $3.439 billion for the most recent quarter from last year’s Q4 figure of $732 million. EPS came in at 29 cents, which was up from last year’s Q4 EPS of 3 cents. BAC beat analysts’ estimates of 26 cents EPS on revenues of $21.24 billion. For the full year, BAC posted revenues of $89.8 billion, net income of $11.4 billion and EPS of 90 cents; all of these figures were significantly higher than 2012′s results.CEO and CFO Commentary
Brian Moynihan, BAC’s CEO, had the following to say about the bank’s results: ”We are pleased to see the core businesses continue to perform well, serving our customers and clients. While work remains on past issues, our two hundred forty thousand teammates continue to do a great job winning in the marketplace.”
BAC’s CFO, Bruce Thompson, went on to say: "We enter this year with one of the strongest balance sheets in our company's history. Capital and liquidity are at record levels, credit losses are at historic lows, our cost savings initiatives are on track and yielding significant savings, and our businesses are seeing good momentum."
No Dividend Change
Bank of America did not mention any change to its dividend payout in its most recent earnings release. At the beginning of 2009, during the financial crisis, BAC cut its quarterly dividend from 32 cents to 1 cent, and the company has still not raised it. With positive earnings reports like this, investors will be looking for higher dividends in the near future.
Stock Performance
BAC stock was up 52 cents, or 3.1%, in pre-market trading, after finishing Tuesday’s trading up 34 cents, or 2.07%. So far this year, BAC is up 4.16%.
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