Bank of America profits rise; bank warns of slowing economy
Bank of America says its fourth-quarter profits rose slightly from a year ago, as higher credit costs and potentially bad loans more than offset a sharp rise in interest revenue
NEW YORK (AP) — Bank of America's fourth-quarter profits rose slightly from a year ago, as higher credit costs and potentially bad loans more than offset the bank's sharp rise in interest revenue.
The Charlotte, North Carolina-based bank said Friday that it earned a profit of $7.13 billion, or 85 cents a share in the three months ended Dec. 31, compared to a profit of $7.01 billion, or 82 cents a share, in the same period a year earlier. The results were better than analysts' forecast of a profit of roughly 77 cents per share, according to FactSet.
Like its major competitors, Bank of America saw a sharp rise in interest income, helped by the Federal Reserve aggressively raising interest rates last year to stop inflation. BofA's interest revenue was roughly $3 billion higher than it was in 2021.
But also like JPMorgan Chase and others, BofA saw a slowdown in its investment banking business and had to set aside more money to cover potentially bad loans. The bank had $1.1 billion in credit reserves added this quarter; a year earlier, the bank released $500 million from that account.
