Bank of America announced higher profits on accelerated performance in consumer banking and lowers cost. At the same time, the bank admitted that it is fighting to raise revenue despite U.S economy performing great. The Bank revealed that it has obtained a profit of 3.01 billion USD or 28 cents per share. The Bank upgraded around 10 percent over last year. CEO Brian Moynihan stated that this is the highest earning for the bank in last decade “doing more business with each customer and client.”
Chief Financial Officer Paul Donofrio from the bank stated that growing company revenue was very difficult to achieve. Bank of America is widely exposed when it comes to low interest rates compare to other Big Banks. BofA depends on retail banking utterly and less on trading.”Although the U.S. economy is improving slowly, revenue growth remains challenging,” he further added.
Trading division from the Bank preformed fantastic last year. The division did very well compare with last year, in spite of suffering from rough and difficult markets.”Global markets,” division also had a fantastic run last year. It amalgamated a net profit of $185 million compared with a loss of $75 million a year earlier.
The bank reduced around 10,000 employees or total five percent of employees. Slimmed down to 213,280 from 223,715 . The reduction mainly occurred in its Legacy Assets and Servicing division. The Bank also shut down around 129 branches. Currently the bank has 4,726 branches. This is the fourth year in a row that BofA has cut number of branches.
The bank has huge loans, $21.3 billion in energy loans, 2 percent of the bank’s total loans. The difficulties in the energy sector have not led to defaults or financial error as it has been for many years. BofA was slimming down its organizational setup and was retailing its Legacy Assets and servicing business. Accordingly, the Bank contains bad mortgages and other investments which finally venom the bank’s balance when the financial crisis hit. BofA’s revenue remained $19.53 billion compared with $18.73 billion the year before.