Source: Zero Hedge
BofA Beats Boosted By Buybacks As FICC Revenue Rebounds While NIM Tumbles Continuing the barrage of Q4 bank earnings reports started with better than expected results by JPMorgan and Citi, and offset by the latest dismal report from Wells Fargo, moments ago BofA reported so-so Q4 earnings, with better than expected earnings driven by a surge in FICC trading, while overall revenue disappointed as the bank’s consumer division disappointed as Net Interest Margin tumbled to a new all time low. Starting at the top, BofA reported Q4 EPS of $0.74, beating expectations of $0.70, and up 6% from the prior year, even as revenues of $22.3BN declined 1% from $22.7BN one year ago, missing expectations of a $22.36BN print, with Net Income also declining to $7.0BN from $7.3BN. But how did EPS rise 6% even as Net Income declined 4% Y/Y? Simple: the bank repurchased 9% of its shares outstanding, while keeping its expenses flat. A quick look at the company’s balance sheet reveals a continuation of historical trends, with total deposits up 5%… … while total loans and leases increased 4% Y/Y.