The consumer loan business saved the day for Bank of America. The bank reported a profit in its fourth-quarter earnings, thanks to the boost in the consumer loan business. The consumer loans sold like hot cakes in the last quarter and it saw a 9% increase.
The Bank of America reported a profit of $2.4 billion for the October to December quarter. This profit is after deducting the $2.9 billion charge in accordance with the new Tax Cuts and Jobs Act.
Brian Moynihan, the Bank of America CEO, said that the bank has seen good growth in 2017. The bank gained a good market share across its wide range of business. It was able to achieve the profit margin by keeping a close eye on credit, expenses and the risk exposure.
He also said that the bank made investments on its employees in 2017. The bank repaid $17 billion to its shareholders in 2017 through stock repurchases and dividend payments. It earned 47 cents per share despite a 27 cent pull back from the new tax law. The bank’s earnings were hit by the one-time tax charge that came into effect after the new tax law. The corporate taxes have been cut to 21% from 35% and this will benefit the profits of the banks in the long run.