UPDATE: Bank of America Posts Lower Q4 Profit

Shares of

declined more than 2% in pre-market trading after the bank reported lower profit in the fourth quarter. The Charlotte, North Carolina-based company posted quarterly net income of $3.05 billion, or $0.25 per share, compared to $3.44 billion, or $0.29 per share, in the year-ago quarter. The latest quarter results included three adjustments that lowered EPS by $0.07. Its revenue dropped 13% to $18.73 billion, while revenue on a tax equivalent basis shrank to $18.96 billion. However, analysts were expecting earnings of $0.31 per share on revenue of $20.94 billion. Stock trading revenue rose slightly to $911 million in the quarter. Litigation expense shrank to $393 million from $2.3 billion. Consumer and Business Banking posted net income of $1.8 billion, versus $2.0 billion, in the year-earlier quarter. Consumer Real Estate Services posted a net loss of $397 million, versus a year-ago net loss of $1.0 billion. Global Wealth and Investment Management posted net income of $706 million, down from $778 million. Global Banking's net income rose 14% to $1.4 billion, while Global Markets posted a net loss of $72 million versus a net loss of $47 million. Noninterest expense shrank to $14.2 billion from $17.3 billion. Noninterest income slipped 15% to $9.1 billion. Net interest income, on an FTE basis slipped $1.1 billion year-over-year to $9.9 billion in the fourth quarter. "We continued our focus on optimizing the balance sheet this quarter, building capital and managing expenses in a challenging interest rate and geopolitical environment," said Chief Financial Officer Bruce Thompson. "Credit quality remained strong, reflecting the improving economy and our solid risk underwriting." Bank of America shares slipped 2.12% to $15.70 in pre-market trading.