Bank of America profits rise 28% as labor costs surge
Bank of America reported a 28 percent increase in profits over the prior-year quarter, but the bank saw the same wage inflation as its Wall Street competitors.
The bank reported a profit of $7.01 billion, or 82 cents per share, for the fourth quarter on Wednesday
This is an increase over the $5.47 billion profit, or 59 cents per share, made during the same period last year
According to FactSet's survey of analysts, the bank was projected to earn 77 cents per share.
which experienced an increase in income from $1.67 billion to $2.68 billion
The year ended strongly for other banks with investment banking operations as corporations rushed to conclude agreements or go public.
A one-time boost of $851 million in loan-loss reserves released last quarter also helped BofA.
BofA's largest division by revenue and profitability, consumer banking, saw an increase in profits to $3.12 billion from $2.59 billion a year earlier.
Last year, the bank spent $36.1 billion on salaries and perks, an increase of 10% from the previous year