Bank of America Corp (NYSE:BAC) shares fell in Friday pre-market trading after it reported a decline in fourth-quarter revenue and earnings.
The banking group posted revenue of $22 billion for the quarter to end December 2023, down 10% from a year earlier.
Net income declined to $3.1 billion, or $0.35 per diluted share, compared to $7.1 billion, or $0.85 per diluted share in 4Q 2022.
Like its banking sector peers, the lender faced an additional expense of $2.1 billion associated with a Federal Deposit Insurance Corporation (FDIC) assessment following the small banks’ crisis of early 2023.
Earnings were also impacted by a pre-tax charge of $1.6bn during the quarter, following its transition away from the London Interbank Offered Rate.
It increased its provision for credit losses by $12 million to $1.1 billion over the quarter.
“We reported solid fourth quarter and full-year results as all our businesses achieved strong organic growth, with record client activity and digital engagement,” BoA chair and CEO Brian Moynihan commented in a statement.
“This activity led to good loan demand and growth in deposits in the quarter and full-year net income of $26.5 billion.”
Ahead of the opening bell, the bank’s shares were down 2.2% at $32.41.