Bank of America (BAC) expects to deliver “responsible growth in 2024” after posting an encouraging quarterly report over the weekend, featuring a healthy net income of $636m for its Global Markets segment in Q4. The financial services company traded 1.1% lower on the NYSE after the report was published.
Bank of America’s equities revenue up 13% in Q4
BAC’s Global Markets segment, which provides a range of equity and debt-related services, performed well. Sales and Trading revenue rose 3% to $3.6bn while Equities revenue spiked 13% to $1.5bn. However, Fixed, Income, Currencies and Commodities revenue dropped 4% to $2.1bn.
The overall report was mixed as BAC’s earnings per share of 70 cents beat pre-report expectations (68 cents) but revenue of $22.1bn fell short of the $23.74bn estimates. Net income of $3.1bn was also 50% lower than the $7.1bn figure for the same period last year, which wasn’t helped by a 4% dip for the consumer banking segment.
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Chairman and CEO Brian Moynihan preferred to highlight the “solid” full-year results for the company. BAC’s Global Markets segment had a banner year with a record $17.4bn in full-year sales and trading revenue. He also noted that strong client activity and digital engagement bodes well moving forward.
He concluded:
This activity led to good loan demand and growth in deposits in the quarter and full-year net income of $26.5 billion. Our expense discipline allowed us to continue investing in growth initiatives. Strong capital and liquidity levels position us well to continue to deliver responsible growth in 2024.
