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BofA's profit rises 46.8% as Trump's victory spurs trading
[NEW YORK] Bank of America Corp reported a 46.8 per cent rise in quarterly profit on Friday, kicking off what is expected to be a strong period for US banks following an upswing in market activity in the wake of the US presidential election.
Also helped by a sharp fall in expenses, net income attributable to shareholders of the No. 2 US bank by assets rose to US$4.34 billion in the three months ended Dec 31 from US$2.95 billion a year earlier. Earnings per share jumped to 40 cents from 27 cents. Analysts on an average had expected earnings of 38 cents per share, according to Thomson Reuters I/B/E/S, although it was not immediately clear if the reported figures were comparable.
Excluding a debt valuation adjustment, total sales and trading revenue rose 11 per cent in the quarter, spurred by a surge in activity in stock and bond markets following Donald Trump's surprise victory on Nov 8.
BofA is also the first big US bank to report earnings since the Federal Reserve raised interest rates for only the second time since 2006 on Dec 14.