America’s Biggest Banks BofA and Citigroup Earnings

Fourth quarter financial results of two largest asset banks in United States of America

America’s biggest banks are raising heads with the reported quarterly earnings by International Business Times. During pre-market hours on Thursday, analysts reported that Bank of America Corporation (NYSE:BAC) had a market cap of $168.68 billion.

Bank of MericaAccording to Reuters, the second largest asset bank in US, based in North Carolina witnessed a 14% fall in their quarterly profits. Their revenue summed up to a total of 18.73 billion. BofA is also expected to report a net income of $3.64 billion, with estimated earnings to be 31 cents per share for the quarter.

Since their last earnings’ release, their stock prices has increased at a rate of 2.51% to $17.14; however their shares have fallen around 4% since 2014.

On Thursday, The North Carolina based bank earnings report for the last quarter was disappointing for its shareholders, however in single area, it seems like they were able to progress, which is cutting their cost and expenditures. Since its merger with Merrill Lynch in the year 2008, its quarterly expenses were lowermost. BofA interest free expenses were around $14.2 billion in contrast with $17.31 billion of last year and $20.14 in 2012.

Brian Moynihan, Chief Executive Officer of the bank said, “In 2014, we continued to invest in our businesses while reducing expenses and resolving our most significant litigation matters.”

Company’s expenses related to litigation plunged to $393 billion in the last quarter from $2.3 billion in the prior year quarter.

Mr. Moynihan on its call to analysts admitted that BofA has been surmounting back its initial brokerage business, in order to assist hedge funds customers.

CitiBank (NYSE:C) is expected to release the earnings with an estimated 9 cents per share. According to analysts, the reported earnings for the Manhattan-based bank had a market cap of 148.6 billion during pre-market hours. The bank closed at 76 cents earning per share the previous year with revenue of $17.78 billion.  They are expected to release their earnings for this quarter with a profit of $2.46 billion, totaling the revenue to be $18.93 billion.

Since their last earnings’ release, Citigroup’s shares have risen at a rate of 1.16%, to $53.14.

On Thursday, Citigroup announced its fourth quarter earnings; profit for the period fell as the bank face legal issues. It was able to post a profit of $0.6 per share. Thomson Reuter’s analyst had estimated earnings of 9 cents with legal charges. It also managed revenue of approximately $17.81 billion falling short of analyst expectation of $18.51 billion.

 

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