Mubasher: Bank of America on Wednesday reported a year-on-year 208% surge in its net income during the fourth quarter of 2018, while its revenue climbed 11%.

The second largest bank in the US by assets generated $7.3 billion in net income in Q4-18, compared with $2.4 billion in Q4-17. Diluted earnings per share (EPS) rose to $0.70 in the reported quarter, from $0.20 a year ago.

Earnings benefitted from the corporate tax cut passed late 2017.

The lender’s bottom line was also boosted by rising interest rates, as the US Federal Reserve raised its benchmark rate for the fourth time in a year last December.
The bank has been able to charge higher rates on loans, without paying out much more to depositors.

Bank of America’s revenue came in at $22.7 billion over the period between October and December 2018, compared with $20.4 billion the same period of the prior year.

Average loan and lease balances in business segments rose $25 billion or by 3% to $881 billion in the three months ended last December, while provisions for credit losses dropped $96 million to $905 million.

Over 2018, the lender’s net income jumped 54% year-on-year to $28.1 billion, from $18.2 billion, while revenue rose 4% to $91.2 billion.