Bank of America shares fall after company reports lower fourth-quarter profit, hit by regulatory charge

Bank of America shares fell over 2% in premarket trading following a decline in fourth-quarter earnings. The company reported earnings per share of 70 cents, surpassing the expected 68 cents per share. However, Bank of America’s net income decreased over 50% to $3.1 billion compared to $7.1 billion the previous year. The bank attributed this decline to a 5% decrease in net interest income, which was primarily caused by higher deposit costs and lower deposit balances. CEO Brian Moynihan expressed confidence in the bank’s growth initiatives and capital strength. Bank of America stock has experienced a 1% decline this year. The bank struggled to benefit from higher interest rates due to its investments in low-yielding securities during the pandemic.