Bank of America’s earnings for the fourth quarter came in at 85 cents a share—beating analysts’ expectations of 77 cents per share (according to FactSet data).
Revenue rose +11% from the year-ago quarter to $24.5 billion in the quarter, which exceeded estimates of $24.2 billion.
Amidst a rising interest rate environment, Bank of America’s net interest income increased +29% to $14.7 billion for the quarter as the bank received higher interest payments on the loans it issued.
The bank had a $1.1 billion provision for credit losses, up $1.6 billion compared with the same quarter in 2021, but mentioned that net charge-offs remain below pre-pandemic levels. Average loans and leases for the bank grew +10% year-over-year, while the same for consumer banking climbed +6%.
Bank of America’s chief executive Brian Moynihan said, “We ended the year on a strong note, growing earnings year over year in the fourth quarter in an increasingly slowing economic environment”.
“The themes in the quarter have been consistent all year as organic growth and rates helped deliver the value of our deposit franchise,” Moynihan added.