Bank of America (BAC) Q3 2022 Earnings

Brian Moynihan, CEO of Bank Of America, is interviewed by Jack Otter during “Barron’s Roundtable” at Fox Business Network Studios on January 9, 2020 in New York City.

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Bank of America said on Monday that earnings and sales exceeded expectations from better-than-expected fixed-income trading and gains in interest income, thanks to shaky markets and rising interest rates.

Here are the numbers:

Revenue: 81 cents versus the 77 cents, an estimate of the share of analysts polled by Refinitiv.Revenue: $24.61 billion versus an estimate of $23.57 billion

Bank of America said in a press release that third-quarter profits fell 8% to $7.1 billion, or 81 cents per share, as the company recorded a $738 million provision for loan losses in the quarter. Revenue after interest expenses rose to $24.61 billion.

The bank’s shares rose 2.9% in premarket trading.

Bank of America, led by CEO Brian Moynihan, is said to be one of the main beneficiaries of the Federal Reserve’s rate-raising campaign. While banking stocks came under severe pressure this year amid concerns that a recession was imminent, lenders including Bank of America, JPMorgan Chase and Wells Fargo are posting higher profits as interest rates rise, allowing them to take more profits. generate from their core deposits and lending activities.

“Our US consumer customers remained resilient with strong, albeit slower growing, spending and still maintained high deposit levels,” Moynihan said in the press release. “Across the bank, we grew lending by 12% in the past year as we provided the financial resources to support our customers.”

Investors will be curious to see how well the bank’s retail and corporate clients are holding up amid signs that both inflation and higher interest rates are taking their toll on the economy.

Shares of Bank of America are down 29% through Friday this year, worse than the 26% drop in the KBW Bank Index.

Last week, JPMorgan and Wells Fargo beat expectations for third-quarter earnings and revenue by generating better-than-expected interest income. Citigroup also beat analysts’ estimates, and Morgan Stanley missed as choppy markets took its toll on its asset management business.

This story is evolving. Come back for updates.

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