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Here comes Bank of America ...

Jan 16, 2019, 16:05 IST

REUTERS/Bobby Yip

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Bank of America Merrill Lynch is set to announce fourth-quarter earnings results Wednesday at around 6:45 am.

Analysts are expecting the bank to report adjust earnings of $0.63 per share, up 33% from last year.

Here's what else analysts are looking for:

  • Revenues: $22.4 billion, up 7.5% from last year.
  • Adjusted net income: $6.3 billion, up 25% from last year.
  • Investment banking: The firm struggled and lost market share in banking fees for much of 2018, especially in the US. Division head Christian Meissner announced his departure in September and was replaced by Matthew Koder. CEO Brian Moynihan has said the bank is adding bankers to correct the problem.
  • Trading: Like competitors, Bank of America is expecting a dip in trading revenues compared with last year, though guidance from executives suggests more modest losses than peers.

"Bad volatility" wreaked havoc on the markets in December, and bank trading results have taken a hit as clients sat it out on the sideline for much of the fourth quarter.

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Citigroup on Monday reported a 21% drop in fixed-income trading and 14% drop in trading overall. JPMorgan Chase posted its worst bond-trading results since the financial crisis.

Goldman Sachs also reports earnings on Wednesday, and Morgan Stanley reports on Thursday.

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