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BAC NYSE· Bank Of America Corp
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BAC NYSE· Bank Of America Corp
Earnings report Q4 2023

Bank of America Reports Decreased Revenue in Latest Quarter

Segments of Revenue

Bank of America's total revenue, net of interest expense, for the latest quarter was $21.96 billion, a decrease from the previous quarter's $25.17 billion. The net interest income for the quarter was $13.95 billion, down from $14.38 billion in the third quarter. Noninterest income also saw a decrease, coming in at $8.01 billion compared to the previous quarter's $10.79 billion.

Strengths

Despite the decrease in revenue, the company recorded positive trading-related revenue for 100 percent of the trading days in the latest quarter, with 93 percent of these days seeing daily trading gains of over $25 million. This is an improvement from the previous year, where positive trading-related revenue was recorded for 99 percent of the trading days, with 90 percent of these days seeing daily trading gains of over $25 million.

Challenges

The company faced challenges in the form of decreased net interest income and noninterest income. The decrease in net interest income may be attributed to changes in the volume and type of transactions, the level of risk assumed, and the volatility of price and rate movements. The decrease in noninterest income could be due to weaker trading performance in derivatives, partially offset by an increase in client financing activities.

Noteworthy

The company's provision for credit losses increased to $1.1 billion in the latest quarter, up from $1.23 billion in the previous quarter. This could indicate an increase in the risk of default on loans issued by the company.

Summary

Bank of America's latest quarter saw a decrease in total revenue, net of interest expense, due to decreases in both net interest income and noninterest income. Despite this, the company recorded positive trading-related revenue for all trading days in the quarter. The company's provision for credit losses also increased, indicating a potential increase in risk.

Source documents

Form 10-K  filed on Feb 20, 2024
121 pages scanned

Reference data

Company financials Q4 revenue 20.86B
Analyst estimates Q4 EPS missed by -45.64%
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