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19 Jan 2021 | 11:42

Bank of America beats Q4 profit estimates as loan loss provisions fall

(Sharecast News) - Bank of America's earnings topped analysts' forecasts despite the lender's shrinking topline as loan loss provisions slowed. For the final three months of 2020, the banking heavyweight posted a roughly 10% drop in revenues net of interest expense versus a year ago to reach $20.1bn.

But loan loss provisions for the latest three-month also fell, from $0.9bn in the comparable year ago quarter to $0.1bn.

Non-interest expenses rose by 5.3% to $13.9bn during the period, resulting in an approximately 21% reduction in net income to $5.5b.

That equated to diluted earnings per share of 59 cents (consensus: 53 cents).

Across all of 2020, net interest revenues fell 17.2% to $85.5bn while net income was 34.7% lower at $17.9bn.

Ahead of its earnings release, the lender's board also announced a $2.9bn share repurchase plan that would extend through 31 March, the maximum amount allowed by the Federal Reserve, alongside a regular quarterly dividend of 18 cents a share to be paid on 26 March.

As of 1234 GMT, shares of Bank of America were down by 1.54% to $32.44.

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