Investing.com - Bank of America (N:BAC), the second largest U.S. bank, reported better than expected fourth quarter earnings ahead of Tuesday’s opening bell, sending its shares higher in pre-market trade.
Bank of America said it earned 28 cents per share in the three months ending December 31, above forecasts for earnings per share of 26 cents and compared to earnings of 25 cents a share in the year-earlier period.
The bank’s fourth quarter revenue totaled $19.53 billion, up 4.3% from sales of $18.96 billion in the same period a year earlier but below estimates for revenue of $19.85 billion.
"The 2015 results were our highest earnings in nearly a decade, reflecting the work we’ve done to develop a straightforward operating model focused on responsible growth and doing more business with each customer and client," said Chief Executive Officer Brian Moynihan.
Moynihan added, "We saw solid customer activity in loan growth, deposits, and wealth management asset flows, and we returned more capital to our shareholders.”
Following the release of the report, shares in BAC rose 26 cents, or 1.84%, in pre-market trade to $14.70 from Friday's closing price of $14.44.
Meanwhile, the outlook for U.S. equity markets was upbeat. The Dow futures pointed to a gain of 1.6%, the S&P 500 futures tacked on 1.65%, while the Nasdaq 100 futures jumped 1.7%.