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April 15, 2021, 6:30 a.m. EDT

Bank of America stock jumps toward 13-year high after profit beat, new $25 billion buyback program

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By Tomi Kilgore

Shares of Bank of America Corp. /zigman2/quotes/200894270/composite BAC +0.39% rose 1.8% toward a 13-year high in premarket trading Thursday, after the bank reported profit that more than doubled and beat expectations, citing strong growth in capital markets and lower credit costs, and set a $25 billion stock repurchase program. Net income rose to $8.1 billion, or 86 cents a share, from $4.0 billion, or 40 cents a share, in the year-ago period. The FactSet consensus for earnings per share was 66 cents. Total revenue was unchanged at $22.8 billion, but topped the FactSet consensus of $21.90 billion, while net interest income (NII) dropped 15.9% to $10.20 billion to fall shy of expectations of $10.27 billion. Consumer banking revenue fell 12% to $8.1 billion, as lower rates led to lower NII, while global markets revenue climbed 19% to $6.2 billion. Provision for credit losses improved to a benefit of $1.9 billion from a cost of $4.8 billion. Separately, the bank said it has authorized the repurchase of up to $25 billion worth of common stock over time. That represents about 7.3% of Bank of America's market capitalization of $344.29 billion. The stock, which is on track to open at the highest price seen since May 2008, has rallied 20.8% over the past three months through Wednesday, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.78% has gained 9.5%.

/zigman2/quotes/200894270/composite
US : U.S.: NYSE
$ 42.18
+0.16 +0.39%
Volume: 31.70M
May 7, 2021 3:49p
P/E Ratio
18.07
Dividend Yield
1.70%
Market Cap
$360.00 billion
Rev. per Employee
$445,624
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/zigman2/quotes/210599714/realtime
US : S&P US
4,234.21
+32.59 +0.78%
Volume: 1.60B
May 7, 2021 3:49p
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