Bank of America Corp has announced a profit of $2.4bn, or $0.20 per diluted share, in its quarter four results. These results include a charge of $2.9bn, or $0.27 per diluted share, related to the Tax Cuts and Jobs Act.
The second largest US bank by assets, reported that revenue, net of interest expense, increased 2% to $20.4bn from $20.0bn. This is its highest since 2006.
Net interest income increased $1.2bn, or 11%, to $11.5bn, reflecting benefits from higher interest rates as well as loan and deposit growth.
Non-interest income decreased $724m, or 7%, to $9.0bn, primarily driven by the impact of the Tax Act and lower mortgage banking income. This was partially offset by higher asset management fees, investment banking revenues and card income.
In a statement, the company said that client activity was strong across all of its businesses in 2017 and it grew average deposits by $47bn, or 4%. It also increased average loan balances in its business segments by $45bn, or 6%.
Shares in Bank of America were up 0.4% in pre-market trading.