Bank of America Corp (NYSE: BAC) reported on Friday that its quarterly profit rose 46.8%, giving a good start of the reporting season of American banks due to the rise of activity in the market after the presidential election.
Net profit attributable to shareholders of the second US bank by asset volume, increased to $ 4.34 billion for the three months ended December 31, from $ 2.95 billion a year earlier, thanks in particular to a sharp drop in expenses.
Earnings per share jumped to 40 cents from 27 cents. Analysts polled by Reuters on average were waiting 38 cents per share.
Total revenue from sales and trade operations with the exception of one adjustment increased by 11% in the quarter due to the rise in activity in the stock and debt markets after the unexpected victory of Donald Trump's presidential election on November 8.
Bank of America also became the first major US bank that reported on the financial results since December 14, when the Fed raised interest rates only the second time since 2006.
JPMorgan Chase & Co (NYSE: JPM), the largest US bank, and Wells Fargo & Co (NYSE: WFC), the largest mortgage lender, will report quarterly results later on Friday.
The banking shares are showing a strong rally since Trump won the election, because his policy is expected to support the economy and weaken the regulation which constrains lenders in recent years.
As for the US stock market, it closed Friday session mixed due to the strengthening of industry, finance and technology sectors and negative dynamics on the part of oil and gas, raw materials and utilities.
At the close on the New York Stock Exchange, Dow Jones fell 0.03%, S & P 500 index rose 0.18%, and NASDAQ Composite index rose 0.48%.