Bank of America Corp.’s stock fell 1% Friday, after the bank posted a steep decline in quarterly profit from a year ago and revenue that fell short of estimates. Bank of America
BAC,
-1.06%
said its fourth-quarter net income declined to $3.1 billion, or 35 cents a share, for the quarter, from $7.1 billion, or 85 cents a share, in the year-earlier period.
The number includes one-time items that the bank flagged earlier this week, when it said it would book a noncash pretax charge of about $1.6 billion in its fourth-quarter report related to the global transition away from an index used to replace the London interbank offered rate, or Libor. The bank said the impact would be added back to its interest income in subsequent periods, largely through 2026, according to a filing. The accounting adjustment follows the discontinuation of the Bloomberg Short-Term Bank Yield Index, which Bank of America has been using as a way to calculate rates on some of its commercial loans. It comes after the U.S. Federal Reserve and other banking regulators moved to end the use of Libor as of the middle of 2023. Excluding those items, per-share earnings came to 70 cents, ahead of the 53 cent FactSet consensus, but revenue fell 10% to $22.0 billion, below the $23.7 billion FactSet consensus. Bank of America’s stock price dropped by 35 cents to close at $32.80 a share. Edward Jones analyst James Shanahan said Bank of America missed hi …
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BAC,
-1.06%
said its fourth-quarter net income declined to $3.1 billion, or 35 cents a share, for the quarter, from $7.1 billion, or 85 cents a share, in the year-earlier period.
The number includes one-time items that the bank flagged earlier this week, when it said it would book a noncash pretax charge of about $1.6 billion in its fourth-quarter report related to the global transition away from an index used to replace the London interbank offered rate, or Libor. The bank said the impact would be added back to its interest income in subsequent periods, largely through 2026, according to a filing. The accounting adjustment follows the discontinuation of the Bloomberg Short-Term Bank Yield Index, which Bank of America has been using as a way to calculate rates on some of its commercial loans. It comes after the U.S. Federal Reserve and other banking regulators moved to end the use of Libor as of the middle of 2023. Excluding those items, per-share earnings came to 70 cents, ahead of the 53 cent FactSet consensus, but revenue fell 10% to $22.0 billion, below the $23.7 billion FactSet consensus. Bank of America’s stock price dropped by 35 cents to close at $32.80 a share. Edward Jones analyst James Shanahan said Bank of America missed hi …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]