Bank of America beats estimates
Bank of America (BAC) declared better-than-expected 4Q16 earnings on January 13, 2017. The company reported adjusted earnings per share (or EPS) of $0.40, higher than analysts’ estimates of $0.38 and 47% higher year-over-year.
On an adjusted basis, the bank reported EPS of $0.42. Bank of America’s disciplined cost management strategy and higher trading revenues drove the earnings.
Bank of America stock rose 0.4% after the earnings release. Since Donald Trump’s presidential win, Bank of America stock has gained ~35% on anticipation of deregulation in the sector and a steady pace of interest rate hikes.
Bank of America’s CFO, Paul M. Donofrio, said in the bank’s earnings release, “Strong client activity and good expense discipline created solid operating leverage again this quarter.”