Bank of America reported higher fourth-quarter earnings Tuesday as lower expenses and solid overall loan growth offset the hit from its exposure to the slumping oil sector. Earnings for the quarter ending December 31 were $3.3 billion, up 9.3 percent from the year-ago period. Revenues rose 4.2 percent to $19.8 billion. BofA saw non-interest expenses fall 2.2 percent to $13.9 billion, while overall loans rose 2.7 percent to $890.7 billion.
However, like other large banks, BofA was forced to set aside higher reserves in case of defaults in the energy sector. The company's global banking business boosted provisions by $264 million, resulting in a 9.3 percent fall in this unit to $1.4 billion. Earnings for 2015 came in at nearly triple the prior year's at $14.4 billion. As with other banks, BofA's 2014 results were marred by huge legal expenses in the aftermath of the 2008 financial crisis.
"The 2015 results were our highest earnings in nearly a decade," said chief executive Brian Moynihan. Earnings for the fourth quarter translated into 28 cents per share, two cents above analyst expectations. Shares of BofA rose 1.9 percent to $14.73 in pre-market trade.
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