Tallahassee Journal

Bank of America profit falls on lower bond trading revenue

Bank of America profit falls on lower bond trading revenue

Bank of America, the second-largest U.S. bank by assets, reported a 14 percent fall in quarterly profit as revenue from fixed-income trading fell. Bond trading revenue plunged 21 percent to $1.5 billion. BofA, like much of Wall Street, was hit by a sharp spike in market volatility in December that discouraged many investors from taking positions.bank_of_america

JPMorgan Chase reported a decline of 14 percent in quarterly bond trading revenue on Wednesday. Total revenue fell 13 percent to $18.73 billion, excluding accounting adjustments. BofA’s shares were down nearly 3 percent in premarket trading on Thursday.

Net income attributable to common shareholders fell to $2.74 billion, or 25 cents per share, in the fourth quarter from $3.18 billion, or 29 cents per share, a year earlier The bank had adjusted earnings of 32 cents per share. On that basis, analysts on average had estimated earnings of 31 cents per share.

Overall fixed-income trading has been on a decline since 2009, largely due to new rules that discourage banks from taking unnecessary risks. Several big banks have scaled back their trading operations or quit the business. BofA has been hit by high legal costs since the financial crisis, which have been undermining the cost-cutting initiatives introduced by Chief Executive Brian Moynihan.