Bank of America plunges in premarket despite upbeat quarterly results

Bank of America (BAC.US) reported upbeat fourth-quarter results as higher interest rates offset weak performance of its investment banking division.

• Earnings per share (EPS): 85 cents vs. 77 cents per share, according to Refinitiv

• Revenue: $24.66 billion vs. $24.3 billion, according to Refinitiv.

• Bank of America was expected to record higher interest income due to higher interest rates and increased lending volumes in the fourth quarter. The bank reported interest income of $14.7 billion, up 29% over the previous year but slightly below Wall Street's expectations of $14.9 billion, according to StreetAccount.

• This gain helped offset the decline of investment banking income, which fell more than 50% to $1.1 billion. This result was largely in line with expectations, according to StreetAccount.

Initially Bank of America stock rose almost 1% in pre-market, however sellers quickly regained control and stock is trading 1.5% lower around $33.90 per share. Source: xStation5