Bank of America's profit faltered by 14% in 2022
Another big bank that reported its earnings on the past Friday is Bank of America. The bank generated $27.5 billion in net profit and $95 billion in revenue for the full-year 2022. Its net income decreased by 14%, and revenue rose by 6.6%. The net interest income jumped by 22%, and the noninterest income dropped by 8%.
The Consumer Banking segment added over 1 million checking accounts and reached a record of 3.5 million consumer investment accounts. At the same time, it experienced net inflows from clients worth $28 billion and a jump in digital sales by 22% versus 2021. The Global Banking division experienced a 38% increase in revenue and saw a growth in average loans and leases of 14%.
BofA’s Global Wealth and Investment Management segment gained more than 119 000 accounts and saw $87 billion in client inflows for the entire year. More importantly, it is on a streak of 51 consecutive quarters of average loan and lease growth. The Global Markets division saw the highest revenue and sales since 2010. In addition to that, its average loans grew by 28% year over year.
Illustration 1.01
Illustration 1.01 shows the daily chart of Bank of America stock, which declined more than 26% in 2022.
2022 (full-year) vs. 2021 (full-year)
Net income = $27.5 billion
(vs. $32 billion in 2021; -14% YoY)
Net interest income = $52.4 billion
(vs. $42.9 billion in 2021; +22% YoY)
Noninterest income = $42.5 billion
(vs. $46.2 billion in 2021; -8% YoY)
Revenue = $95 billion
(vs. $89.1 billion in 2021; +6.6% YoY)
Noninterest expenses = $61.4 billion
(vs. $59.7 billion in 2021; +2.8% YoY)
Provision for credit losses = $2.5 billion
(vs. $-4.6 billion in 2021)
4Q 2022 vs. 4Q 2021 (year over year)
Net income 4Q22 = $7.1 billion
(vs. $7 billion in 4Q21; +1.4% YoY)
Net revenue 4Q22 = $24.5 billion
(vs. $22 billion in 4Q21; +11%. YoY)
Net interest income 4Q22 = $14.7 billion (+48% YoY)
Noninterest income 4Q22 = $9.8 billion (-8% YoY)
Noninterest expenses 4Q22 = $15.5 billion ( +6% YoY)
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
The Consumer Banking segment added over 1 million checking accounts and reached a record of 3.5 million consumer investment accounts. At the same time, it experienced net inflows from clients worth $28 billion and a jump in digital sales by 22% versus 2021. The Global Banking division experienced a 38% increase in revenue and saw a growth in average loans and leases of 14%.
BofA’s Global Wealth and Investment Management segment gained more than 119 000 accounts and saw $87 billion in client inflows for the entire year. More importantly, it is on a streak of 51 consecutive quarters of average loan and lease growth. The Global Markets division saw the highest revenue and sales since 2010. In addition to that, its average loans grew by 28% year over year.
Illustration 1.01
2022 (full-year) vs. 2021 (full-year)
Net income = $27.5 billion
(vs. $32 billion in 2021; -14% YoY)
Net interest income = $52.4 billion
(vs. $42.9 billion in 2021; +22% YoY)
Noninterest income = $42.5 billion
(vs. $46.2 billion in 2021; -8% YoY)
Revenue = $95 billion
(vs. $89.1 billion in 2021; +6.6% YoY)
Noninterest expenses = $61.4 billion
(vs. $59.7 billion in 2021; +2.8% YoY)
Provision for credit losses = $2.5 billion
(vs. $-4.6 billion in 2021)
4Q 2022 vs. 4Q 2021 (year over year)
Net income 4Q22 = $7.1 billion
(vs. $7 billion in 4Q21; +1.4% YoY)
Net revenue 4Q22 = $24.5 billion
(vs. $22 billion in 4Q21; +11%. YoY)
Net interest income 4Q22 = $14.7 billion (+48% YoY)
Noninterest income 4Q22 = $9.8 billion (-8% YoY)
Noninterest expenses 4Q22 = $15.5 billion ( +6% YoY)
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Trade active:
Net profit decline (YoY) in 2022 by the bank (in % terms).
Bank of America $BAC = -14% YoY
JP Morgan Chase $JPM = -22% YoY
Morgan Stanley $MS = -26% YoY
Citigroup $C = -32% YoY
Wells Fargo $WFC = -38% YoY
Bank of America $BAC = -14% YoY
JP Morgan Chase $JPM = -22% YoY
Morgan Stanley $MS = -26% YoY
Citigroup $C = -32% YoY
Wells Fargo $WFC = -38% YoY
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