Mubasher: Bank of America Corp, the second largest US banks by assets, recorded a decline in profits during the fourth quarter (Q4) of 2020, according to the bank's financial results.
The bank's net income applicable to common shareholders decreased to $5.21 billion in Q4-20 from $6.75 billion in the same quarter of 2019.
Meanwhile, the bank saw a 13% year-on-year (YoY) drop in consumer banking revenues to $8.2 billion in the Octobr-December period of 2020, driven by lower rates and credit card activities.
The bank's overall revenue and net of interest expense fall by 10% to $20.1 billion in Q4-20, when compared to the corresponding period of 2019.
In addition, the bank's net interest income (NII) decreased by 16% YoY to $10.3 billion in the fourth quarter of 2020 due to lower interest rates.
The diluted earnings per share (EPS) settled at $0.59 in Q4-20, compared to $0.74 in the year-ago period.
Commenting on the bank's performance, the Chief Financial Officer, Paul Donofrio, said: "Despite one of the worst economic environments in modern memory, we ended the year stronger than before the health crisis and well positioned to support our clients."