FAST FIVE: BofA Beats Boosted By Buybacks As FICC Revenue Rebounds While NIM Tumbles
However, in a concerning similarity to Wells Fargo, BofA's Net Interest Income declined once again, with its net interest margin sliding to 2.35% from 2.41%, a fresh all time low.
And is where the Fed's rate cuts helped: the average rate paid on interest-bearing deposits declined 15 bps from 3Q19 to 0.61%.
But if the bank's core business was the bad news, this was more than offset by the bank's Investment Banking and Markets results, as trading revenue climbed 13% to $2.86 billion, beating the estimate of $2.76 billion, helped by fixed-income activity even as equities trading disappointed.
Meanwhile, Bank of America's investment-banking fees rose 9.3% from a year earlier to $581 million after a blockbuster third quarter, with the investment-banking division continuing its turnaround under Matthew Koder.
As Bloomberg notes, the fourth-quarter markets results were similar to those of JPMorgan which posted a record performance in bond trading Tuesday, and Citigroup Inc., where debt trading jumped by more than double what analysts had forecast.