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Bank of America Q4 earnings beat expectations despite tax charge
Bank of America posted better-than-expected fourth-quarter earnings on Wednesday, even as it took a big hit from US tax reforms.
The bank's fourth-quarter adjusted earnings came in at $0.47 a share, beating expectations for $0.45 despite a one-off charge of $2.9bn related to the newly-signed US tax law.
Net income for the period came in at $2.4bn, or $5.3bn excluding the Tax Act impact. Meanwhile, adjusted revenue came in at $21.4bn, a touch below analysts' expectations of $21.5bn.
Net income interest in the fourth quarter was up 11% to $11.5bn, reflecting benefits from higher interest rates, as well as loan and deposit growth.
Revenue in the consumer banking segment rose 10% to $9bn, while revenue in the global wealth and investment management business was up 7% to $4.7bn. In the global banking division, revenue increased 10% to $5bn.
Chief executive officer Brian Moynihan said: "Responsible growth delivered solid results in 2017. Pre-tax earnings rose 17%, and we continued to close in on our long-term return targets. We gained market share across our businesses while carefully managing credit, risk exposures, and expenses. We invested in technology, client engagement, and in our own team, including the $1,000 bonus we announced last month for 145,000 employees.
"We also shared our success with stakeholders through our high level of funding philanthropic initiatives, our 2 million employee volunteer hours, and our commitment to long-term shareholder value by returning nearly $17 billion in capital through common stock repurchases and dividends."