Bank of America's Fourth Quarter Profit Slumps on Regulatory Charge
Bank of America's fourth-quarter earnings fell short of expectations, with a 56% drop in net income to $3.14 billion, partly due to charges including a $2.1 billion special assessment from the FDIC and a $1.6 billion charge related to the shift away from the LIBOR benchmark. Fixed-income trading revenue dropped 5.8% to $2.21 billion, while equities traders posted a surprise beat with $1.55 billion in revenue. The bank's net interest income fell 5% to $13.9 billion, and non-interest expenses rose 14% to $17.7 billion. Despite challenges, the investment bank's revenue rose 8.1%, driven by a boost from debt issuance.
