Bank of America Corporation announced an 11% year-over-year increase in its fourth-quarter 2022 revenue, net of interest expense, to $24.5 billion, while generating net income for the period of $7.1 billion, or $0.85 per diluted share, as the higher interest rate environment boosted its results.
Wall Street analysts, on average, expected Bank of America to report 4Q revenue of $24.33 billion along with 77 cents a share in earnings, according to Refinitiv.
“The themes in the quarter have been consistent all year as organic growth and rates helped deliver the value of our deposit franchise,” Bank of America CEO Brian Moynihan said in a statement.
“That coupled with expense management helped drive operating leverage for the sixth consecutive quarter,” Moynihan added.
Bank of America noted that its consumer banking segment posted a record net income of $3.6 billion, as the company added about 195,000 net new consumer checking accounts in 4Q, which represents its 16th consecutive quarter of growth.
It also stated, though, that credit card and debit spending by its customers increased 5% year-over-year, even though consumer balances were roughly flat, while the average outstanding balance on credit cards jumped by 14%.
Bank of America’s consumer banking gains helped offset a decline in investment banking fees, which fell more than 50% to $1.1 billion.
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