Bank of America’s Global Markets division saw sales and trading income fall by a fifth in the fourth quarter of 2014, according to results today, excluding accounting adjustments.
The banking group said sales and trading revenue fell from US $3 billion in the fourth quarter of 2013 to US $2.4 billion in the same quarter of 2014.
Fixed Income, Currencies & Commodities (FICC) income dropped $600 million over the same period, which was attributed to a fall in credit income from lower client activity, albeit partially offset by FX and rates business which benefited from increased volatility.
The bank’s Global Markets division as a whole reported a net loss of US $72 million for the fourth quarter of 2014, wider than the US $25 million loss it declared for the same quarter a year ago.
It said the widening of the loss for the division over the quarter was the result of making funding valuation adjustments for uncollateralised derivatives in its sales and trading business.
The full year results showed a rosier picture, however, with income after tax for the Global Markets business rising from US $1.2 billion at the end of December 2013 to US $2.7 billion
In its statement to market, Brian Moynihan, chief executive officer, said the group’s focus on reducing expenses and resolving litigation matters had had a positive impact overall.
He said: “There’s more work and tremendous opportunity ahead as we improve on the platform we’ve built to serve our customers and clients and we enter 2015 in good shape to manage the opportunities and the challenges the markets and the economy will offer.”