BofA’s Bond Traders Post a Surprise Drop as Profit Slumps
- Net income falls by 56%, more than analysts had expected
- Charges including an FDIC special assessment cut into earnings
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Bank of America Corp.’s earnings fell short of expectations as the bank’s numerous charges in the fourth quarter cut into profit and the firm’s fixed-income traders posted a surprise drop in revenue.
Net income fell 56% to $3.14 billion, the company said, a bigger decline than analysts had predicted. The decline in profit was due, in part, to a $2.1 billion special assessment from the Federal Deposit Insurance Corp. and a $1.6 billion charge tied to the finance industry’s shift away from the London Interbank Offered Rate benchmark. Expenses also rose as a result.