The consumer banking unit of Bank of America has posted a net income of $2.19bn for the fourth quarter of 2017, a 14.4% increase compared to $1.92bn a year ago.
For the quarter ended on 31 December 2017, the unit’s total revenue was $8.95bn, a rise of 10.3% compared with $8.11bn in the fourth quarter of 2016.
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The unit’s provision for credit losses in the fourth quarter increased 13.9% to $886m from $760m in the corresponding quarter of 2016.
Overall, the banking group posted a net income attributable to common shareholders of $2.08bn for the fourth quarter of 2017, a fall of 50% compared to $4.17bn a year ago. The decline in profit was triggered by a $2.9bn charge booked by the bank owing to the recent US tax reforms.
The group’s total revenue rose 2% year-on-year to $20.43bn.
BofA CEO Brian Moynihan said: “Responsible growth delivered solid results in 2017. Pretax earnings rose 17 percent, and we continued to close in on our long-term return targets.
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By GlobalData“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. 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.”
