NIM Improves; Net Interest Income Improves More
Fourth-quarter earnings for Bank of America were nearly wiped-out by the company's large mortgage putback settlement with Fannie Mae ( FNMA) and its portion of the $8.5 billion foreclosure settlement between federal regulators and the largest mortgage loan servicers. Looking beyond the legacy mortgage mess, the company's fourth-quarter net interest margin was 2.35%, widening from 2.32% in the third quarter. The company reported fourth-quarter net interest income increased to $10.324 billion from $9.938 billion in the third quarter. That's a 4% increase in just one quarter, when the net interest margin was up only a little over 1%. Delving further, Bank of America's fourth-quarter tax-adjusted net interest income, excluding trading-related net interest income, was $9.543 billion in the fourth quarter, increasing by 2% from $9.320 billion in the third quarter.
Growing Net interest Income Despite Narrowing NIM
JPMorgan Chase ( JPM) had a solid fourth quarter, rounding out the "year of the London Whale," with a profit of $5.7 billion of $5.7 billion, or $1.39 a share.