In the published earnings report, Bank of America posted net income of $3.6 billion for the fourth quarter, while customer balances held steady at $1.6 trillion.
US multinational investment bank and financial services holding company bank of america corp (NYSE: BAC) has published its performance report for the fourth quarter of 2022 with figures showing the company benefited from the Federal Reserve’s interest rate hikes.
According to the company, its revenue rose to $24.66 billion versus the $24.33 billion expected by analysts polled by Refinitiv. Earnings were 85 cents, up from the 77 cents Refinitiv projected. However, the company’s net interest income of $14.7 billion fell slightly short of the $14.8 billion estimate provided by StreetAccount.
With the fourth quarter earnings season already underway, the Bank of America report will provide good support to the broader financial market ecosystem. Impressive net interest income was boosted by higher interest rate hikes, and this helps offset the decline in the firm’s investment banking fees.
These fees were cut by more than 50% to $1.1 billion and kept on par with StreetAccount’s estimate. While many are considering giving Bank of America some praise for its performance, CEO Brian Moynihan described the financial ecosystem as “slowing down.”
“The themes of the quarter have been consistent throughout the year, as organic growth and rates helped deliver value for our deposit franchise. That, along with expense management, helped drive operating leverage for the sixth consecutive quarter,” Moynihan said in a statement.
Signs of a financial struggle were felt across the board with several Wall Street giants laying off staff over the course of the last quarter in a bid to cut operating costs. Among the big names that fired staff, we can name Amazon.com Inc. (NASDAQ: AMZN), and Meta Platforms Inc (NASDAQ:META).
Bank of America Business Segment Highlights
In the published earnings report, Bank of America posted net income of $3.6 billion for the fourth quarter, while customer balances held steady at $1.6 trillion. The bank Average deposits of more than $1 trillion, an increase of $20 billion, or a combined credit/debit card spend of 2% of $223 billion, an increase of 5%.
The financial services giant also reported that its Consumer Banking unit posted growth of approximately 195,000 net new Consumer checking accounts. This growth represents the 16th consecutive quarterly growth despite the general turmoil the industry has experienced in recent months.
The global had a more visible kick as total assets under management (AUM) balances hit $1.4 trillion on top of a $237 billion decline. With credit and debit card spending rising year-over-year, outstanding credit card balances also skyrocketed by 14%.
Bank of America shares fell more than 2% before trading and have risen about 4% since the start of the year despite widespread fears rocking the financial industry of an impending recession.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-life applications of blockchain technology and innovations to drive mainstream acceptance and global integration of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based sites and media. Benjamin Godfrey is a lover of sports and agriculture.
