The US bank posted revenues of US$22.3 billion in the fourth quarter of 2019 in a ‘steadily’ growing economy marked by ‘solid’ client activity, according to chairman and CEO Brian Moynihan (pictured).

Bank of America reported quarterly earnings of US$7 billion, or US$0.74 per diluted share, compared to US$7.3 billion, or US0.70 in the prior year quarter.

Net income in the global markets business unit, at US$574m, increased by 13% compared to the 4Q2018 while revenues, at US$3.4 billion, increased six percent, driven by sales and trading.

Sales and trading revenues stood at US$2.8 billion, including net debit valuation adjustments (DVA) losses of US$86m. Excluding net DVA, sales and trading revenue increased 13% to US2.9 billion; fixed income, currencies, and commodities (FICC) revenue of US$1.8 billion increased 25%, driven by an improvement in most products, particularly mortgages; and equities revenue of US$1 billion decreased four percent, driven by lower levels of client activity in derivatives.

Bank of America issued 97 structured products via its BofA Finance vehicle in the US between October 1 and December 31 2019, according to SRP data. The structures sold a combined US$597m, a 33% year-on-year decrease compared to US$887m collected from 81 products in the fourth quarter of 2018.

The bank’s products were available via eight different distribution channels, of which BofA Securities – formerly known as Bank of America Merrill Lynch (Baml) – accumulated the brunt of the sales volumes for the quarter (US$428.9m from 55 products). Bank of America’s structured products were also available via, among others, UBS (US$77m from nine products); Incapital (US$11m from six products); and Advisor Asset Management (US$5.8m).

The best-selling structure in the fourth quarter were the Absolute Return Buffer Notes on the S&P 500 which sold US$55m. The capital protected securities have a two year tenor and participate 100% in the upside performance of the US benchmark.

Al bar one of the bank’s products were linked to equities, the exception being the US$21m commodity-linked notes 09709THF1, which were tied to the S&P GSCI Total Return and the 3-month USD Libor.

Sales volumes for full year 2019 stood at US$3.1 billion (from 401 products), which gave the bank a five percent share of the US market. By comparison, in 2018 the bank sold US$3.2 billion (from 229 products).

Revenues in global wealth and investment management of US$4.9 billion decreased two percent. Asset management fees increased by five percent, driven by the impact of higher market valuations and positive AUM flows, while transactional revenue declined.

As of December 31 2019, the balance sheet included total debt securities of US$472.2 billion, up from US$441.8 billion at the end of 4Q 2018, and also an increase from US$444.6 billion seen at the end of the third quarter.

‘Our teammates produced another strong quarter and year, allowing us to increase investments in our customers, communities, and employees, while keeping a close eye on expenses,’ said Moynihan, commenting on the results.

‘As evidenced by a quarter in which our customer deposits surpassed US$1.4 trillion and client balances in our wealth management business topped US$3 trillion, we enter 2020 with momentum,’ he said.

Click the link to view the Bank of America 4Q2019 results, presentation and supplement.