The second-largest US bank reported that it originated $13.7 billion of product in This fall 2020, a 2.2% acquire from the earlier quarter. (BofA) noticed its residence lending plunge by 38.2% yr over yr. Its residence fairness lending additionally fell, all the way down to $469 million from $984 million within the third quarter.
One in every of its chief rivals, Wells Fargo, just lately posted a 12.5% year-over-year decline on its residential mortgage loan manufacturing. JPMorgan Chase, then again, elevated its residence loan originations by 38.2%.
(BofA)’s internet revenue within the fourth quarter was $5.5 billion ($0.59 per diluted share), whereas its gross revenues slipped 10% to $20.1 billion.
Regardless of the slowdown, Bank of America chairman and CEO Brian Moynihan stated they had been optimistic that the bank might bounce again this yr.
“During 2020, we witnessed the dramatic effects of the health crisis on the economy and our company’s operations,” he stated. “In the fourth quarter, we continued to see signs of a recovery, led by increased consumer spending, stabilizing loan demand by our commercial customers, and strong markets and investing activity. The latest stimulus package continued progress on vaccines, and our talented teammates – who performed well helping their customers through this crisis – position us well as the recovery continues.”
“Despite one of the worst economic environments in modern memory, we ended the year stronger than before the health crisis and well-positioned to support our clients,” stated chief monetary officer Paul Donofrio. “Because of the responsible way we have operated the company over many years, we were able to support the economy by raising $772 billion in capital on behalf of clients, invest in our franchise and still be in a position to return $4.8 billion in capital to our shareholders in the first quarter of 2021 in the form of common stock repurchases and dividends.”