In the released earnings report, Bank of America recorded a net income of $3.6 billion for the fourth quarter while client balances stayed flat at $1.6 trillion.
American multinational investment bank and financial services holding company Bank of America Corp (NYSE: BAC) has released 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 came in at $24.66 billion as against $24.33 billion which was expected by analysts polled by Refinitiv. Earnings came in at 85 cents, an amount that was more than the 77 cents that were projected by Refinitiv. However, the company’s Net Interest Income of $14.7 billion fell slightly short of the $14.8 billion estimate given by StreetAccount.
With the fourth quarter earnings season now underway, the report from the Bank of America will lend good succor to the broader financial market ecosystem. The impressive net interest income was fueled by the higher interest rate hikes, and this helps to offset the slump in the firm’s investment banking fees.
These fees dropped by over 50% to $1.1 billion and remained at par with StreetAccount’s estimate. While many are considering giving Bank of America some accolades for its Performance, Chief Executive Officer, Brian Moynihan described the financial ecosystem as “increasingly slowing.”
“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 said in a statement.
The signs of struggle in the financial terrain were felt across the board with several Wall Street giants laying off their staff over the course of the past quarter in a bid to cut down on operations costs. Amongst the biggest names that laid off staff, we can name Amazon.com Inc (NASDAQ: AMZN), and Meta Platforms Inc (NASDAQ: META).
Bank of America Business Segment Highlights
In the released earnings report, Bank of America recorded a net income of $3.6 billion for the fourth quarter while client balances stayed flat at $1.6 trillion. The bank Average deposits of more than $1 trillion, up $20 billion, or 2% combined credit/debit card spend of $223 billion, up 5%.
The financial services giant also reported that its Consumer Banking unit recorded an approximate growth of 195,000 net new Consumer checking accounts. This growth accounts for the 16th consecutive quarterly growth despite the general turmoil the industry has seen over the past months.
The global took a more visible kick as total Assets Under Management (AUM) balances came in at $1.4 trillion atop a decline of $237 billion. With credit and debit card spending rising year over year, the outstanding balances on credit cards also soared by 14%.
Bank of America shares dropped by over 2% in the pre-market and are up by about 4% since the start of the year despite the general fear rocking the financial sector of an impending recession.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
