Bank of America announced on Tuesday (Jan. 19) that its revenue net of interest expense for Q4 2020 fell 10 percent compared to the year-ago quarter, as the ranks of its mobile and digital banking users climbed.
The firm’s active mobile banking users rose 6 percent to 30.8 million during the quarter. Active digital-banking users likewise grew 3 percent to 39.3 million.
BofA added that digital sales accounted for 45 percent of all consumer banking sales for the quarter, while consumers using the Zelle payments network (which BofA partly owns) sent and received 157 million transfers worth $43 billion overall.
Additionally, Bank of America said CashPro Active App users increased by 49 percent and sign-ins grew by 40 percent on a rolling 12-month basis, exceeding 1 million sign-ins in 2020. The firm had approximately 500,000 CashPro users throughout its commercial, corporate and business banking businesses.
The firm reported total credit/debit spend of $173.7 million in Q4 2020 compared to $167.2 million in Q4 2019. Average credit card outstanding balances were $78.2 million in Q4 2020 in contrast to $95 million in Q4 2019.
Bank of America reported 59 cents in earnings per share (EPS) on revenue net of interest expense of $20.1 billion. The results exceeded analysts’ bottom-line estimates of 55 cents in EPS, but they felt short on their top-line forecasts of $20.68 billion in revenues.
“In the fourth quarter, we saw higher net interest income, higher Consumer revenue, record asset management fees, strong results from our Global Markets teams, and a stronger balance sheet,” Chairman and CEO Brian Moynihan said in an earnings announcement. “In 2020, we earned nearly $18 billion and achieved several key strategic objectives: gaining market share in deposits, expanding our digital leadership, and adding thousands of wealth management clients.”
Moynihan said in the announcement that the newest stimulus package, ongoing progress on vaccines and the company’s workforce position the company well amid the continuing recovery.