Bank of America (BAC) Q4 earnings 2022

Bank of America (BAC) Q4 earnings 2022

Bank of America reported fourth-quarter results on Friday that confirmed greater rates of interest helped the Wall Road large make up for a pointy slowdown in funding banking.

Listed below are the important thing metrics in contrast with what Wall Road anticipated:

  • Earnings: 85 cents per share versus 77 cents a share, in line with Refinitiv
  • Income: $24.66 billion versus $24.33 billion, in line with Refinitiv

Shares of Bank of America fell practically 3% in premarket buying and selling.

Expectations had been operating excessive that Bank of America would publish positive factors in curiosity revenue because of greater charges and mortgage development within the fourth quarter. The financial institution reported $14.7 billion of web curiosity revenue, up 29% 12 months over 12 months however barely beneath Wall Road expectations of $14.8 billion, in line with StreetAccount.

That achieve helped offset a decline in funding banking charges, which fell greater than 50% to $1.1 billion. That consequence was largely in keeping with expectations, in line with StreetAccount.

Bank of America, led by CEO Brian Moynihan, was alleged to be one of the primary beneficiaries of the Federal Reserve’s rate-boosting marketing campaign. However financial institution shares bought hammered final 12 months amid considerations a recession was on the way in which.

“The themes in the quarter have been consistent all year as organic growth and rates helped deliver the value of our deposit franchise. That coupled with expense management helped drive operating leverage for the sixth consecutive quarter,” Moynihan stated in a press release.

Buyers will likely be wanting to see how Moynihan describes the state of the financial institution’s retail and enterprise clients. The financial institution applied a $1.1 billion provision for credit score losses, up $1.6 billion in contrast with the identical quarter in 2021, however stated web charge-offs stay beneath pre-pandemic ranges.

Notably, that was beneath the $2.3 billion provision for credit score losses from rival JPMorgan Chase, which warned {that a} “mild recession” is now its central case for the U.S. financial outlook. Within the earnings launch, Moynihan described the financial atmosphere as “increasingly slowing.”

On the buyer banking entrance, Bank of America reported that balances had been roughly flat, whereas bank card and debit spending rose 5% 12 months over 12 months. Common excellent stability on bank cards climbed by 14%.

Common loans and leases for the entire financial institution rose 10% 12 months over 12 months, whereas the identical metric for client banking rose 6%.

The worldwide wealth and funding administration enterprise noticed whole income enhance marginally whilst common deposits declined. Web revenue for the phase was down 2% 12 months over 12 months.

Previous to the report, Bank of America’s inventory was up 4% within the first few days of 2023.

This can be a breaking information story. Please examine again for updates.

Source link

Wells Fargo WFC Q4 earnings 2022 Previous post Wells Fargo WFC Q4 earnings 2022
Citigroup's fourth-quarter profit declines by 21% as bank sets aside more money for credit losses Next post Citigroup’s fourth-quarter profit declines by 21% as bank sets aside more money for credit losses