Bank of America Stock (NYSE:BAC)
After missing Q4 consensus estimates for net interest income and credit loss provisions, Bank of America (NYSE:BAC) stock sank 2.6% in Friday premarket trade. As a result, Bank of America stock declined.
Earnings per share for the fourth quarter increased to $0.85 from $0.81 in the third quarter and $0.82 in the fourth quarter of 2021, surpassing the average estimate of $0.77.
Average deposit amounts of $1.93T compared to $1.96T in the previous quarter; average loan and lease balances of $1.04T compared to $1.03T.
Net interest income increased to $14.7B in Q4 from $13.8B in the previous quarter and $11.4B in the same period a year earlier, above the Visible Alpha consensus estimate of $14.8 B. The net income-to-earnings ratio has increased to 2.22% from 2.06% in the previous quarter to 1.67% a year earlier.
Noninterest income in Q4 was $9.85B, over the $9.27B expected by the Visible Alpha community. This decreased from $10.7B in Q3 to $10.7B in Q4 2021.
Compared to the previous quarter's $898M, which included a net reserve build of $378M, the provision for credit losses was $1.09B, including a net reserve build of $403M.
Chairman and CEO of Bank of America stock Brian Moynihan said that the quarter's recurring themes reflected a pattern that had persisted throughout the year: organic growth and rates had contributed to the value of the deposit franchise. For the sixth straight quarter, "operating leverage was driven by that and spending control."
With $10.8B in revenue from consumer banking, up from $9.90B in Q3 and $8.91B in Q4 2021, and $3.58B in net income, up from $3.07B and $3.12B, respectively, last quarter and a year ago, this is a significant increase.
Total revenue from Global Wealth and Investment Management was $5.41B, down from $5.43B in the previous quarter and $5.40B in the same period a year ago, with net income of $1.20B, up from $1.19B in Q3 and $1.23B in Q4 2021.
Total revenue from Global Banking was $6.44B, up from $5.59B in Q3 and $5.91B in Q4 2021; net income was $2.54B, up from $2.04B in the previous quarter and down from $2.67B in the same period a year ago.
Revenue in Global Markets was $3.86B, down from $4.48B in the previous quarter but up from $3.82 B in the previous quarter of 2021. Fourth-quarter net income (ex-DVA) for Global Markets was $650M, down from $1.08B in the third quarter and $667M in the fourth quarter of 2021.
- FICC sales and trading revenue decreased to $2.34B from $2.57B in the previous quarter. It grew from $1.57B in the year-ago quarter after subtracting net debit valuation adjustments.
- Revenue from sales and trading of shares (ex DVA) decreased to $1.38B from $1.54B in the previous quarter. Still, it grew from $1.37B in the same period a year earlier.
Conference at 9:30 a.m. EST.
Bank of America (BAC) came ahead with a GAAP EPS of $0.85, and their revenue of $24.53B was $360M more than they had expected.
Featured Image: Unsplash @ Rubaitul Azad