Pre-tax profits at the Dublin-based Bank of America Europe (BAE) last year increased almost 13-fold to $749 million (€690 million).
Accounts for the bank show that revenues increased by 13 per cent from $1.76 billion to $1.99 billion in the 12 months to the end of December last.
The pre-tax profits of $749 million followed pre-tax profits of $58 million in 2020.
Last year’s pre-tax profits were boosted by an impairment release for credit losses of $152 million and this followed an impairment charge of $439 million under the same heading in 2020.
A note with the accounts said the $152 million impairment release “reflects the effects of economic recovery from the Covid-19 pandemic”.
Investment income last year increased by 29 per cent, from $405 million to $522 million, while net trading income increased by 58 per cent, from $168 million to $265 million.
Interest income declined from $696 million to $580 million.
The accounts said the overall increase in revenues was driven by net trading income resulting from growth in global economic activity.
The company provides a range of financial services and forms part of Bank of America ’s global banking and global markets operations in Europe, the Middle East and Africa.
BAE employs 2,349 in total with 1,000 based in Dublin.
The accounts said in April 2021, the firm transferred 708 employees to the London branch of Bank of America and this contributed to employee numbers reducing from 2,858 to 2,349.
The accounts noted that as a result of Brexit, loans valued at $656 million were transferred to the London branch during the year.
On the "Russia/Ukraine conflict", the accounts said the company's exposure was not considered to be material at this point.
Staff costs reduced from $544 million to $534 million. The accounts show 10 directors last year shared aggregate pay of $5.54 million – almost half the $11 million paid out to directors in 2020. Five board members are non-executive directors.
The company’s professional fees last year rose from $37 million to $49 million.
The company’s assets last year increased from $66.2 billion to $67.35 billion. The company’s shareholder funds totalled $12.67 billion which included accumulated profits of $3.5 billion.
