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Bank of America profit jumps on M&A boost, loan growth -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: The Bank of America logo in Manhattan, New York City is shown on January 30, 2019. REUTERS/Carlo Allegri

(Reuters] – Bank of America Corp. (NYSE:) posted a rise in fourth-quarter profits on Wednesday. The Bank of America Corp. (NYSE:) benefited from global loan growth as well as a frenetic pace of dealmaking that drove its investment banking division.

Bank of America, along with other Main Street lenders like JPMorgan Chase & Co (NYSE:) and Wells Fargo (NYSE:) & Co, is expected to benefit from upcoming interest rate hikes in 2022, after almost two years of rock-bottom rates that eroded the bank’s income from loans.

Because of its unique balance sheet, the bank with assets second to none in America is less sensitive than others to changes in interest rates.

During the year, Bank of America’s investment bank rode the global M&A boom to post healthy profits, as investment banks closed record volumes of mergers, underwrote several initial public offerings and advised on deals involving special purpose acquisition companies.

Bank reported revenue of $22.1 million, net of interest expenses, for its quarter ending Dec. 31. This is 10% more than last year.

From $5.21 trillion, which was 59 cents per shares a year ago, profit rose to $6.77billion, or 82% per share.

The average analyst had predicted a profit of 76% per share according to IBES from Refinitiv.

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