Bank of America (BofA) reported Q4 2021 earnings that topped estimates. EPS came at $0.82 vs. $0.76 forecasted with net profits of $7bn, up 28% YoY. Revenues rose 10% YoY to $22.17bn. BofA released $851mn in reserves with provision for credit losses improving by $542mn, helping boost earnings. Its average deposits grew $142bn, or 16%, to more than $1tn and its Global Banking business saw revenues grow over 16% to $5.9bn. Its CET1 ratio stood at 10.6%, down 30bp QoQ. BofA’s bonds were stable with its 5.125% Perps at 103.88, yielding 3.43%.
Morgan Stanley reported Q4 2021 earnings that topped estimates. EPS came at $2.01 vs. $1.91 forecasted with net profits of $3.7bn, up 9% YoY. Revenues rose 7% YoY to $14.5bn. Its equities trading revenue rose 13% to $2.86bn while fixed income slid 31% to $1.23bn. Wealth Management revenues grew 10% to $6.25bn. Its CET1 ratio stood at 16%, unchanged from the previous quarter. Morgan Stanley’s bonds were stable with its 5.875% Perp at 112.1, yielding 3.06%.