BofA earnings rise on merger activity, loan growth

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Jan 19 (Reuters) – Bank of America Corp (BofA) reported a rise in fourth-quarter profit on Wednesday, benefiting from loan growth and a frenetic pace of global brokerage activity that helped boost its investment banking business. .

BofA, along with other Main Street entities such as JPMorgan Chase & Co and Wells Fargo & Co., expect to benefit from the next interest rate hikes in 2022, after almost two years of low rates that eroded the income of lenders in the credit sector.

America’s second-largest bank by assets is more sensitive to rate fluctuations than its peers, due to the composition of its balance sheet.

During the year, BofA’s investment banking capitalized on the global M&A boom to post healthy profits, as many lenders closed record merger volumes, underwrote several IPOs and advised on deals involving takeovers of special purpose firms. .

For the quarter ended December 31, the bank reported income, net of interest expense, of $22.1 billion, up 10% from last year.

Earnings rose to $6.77 billion, or 82 cents a share, compared with profit of $5.21 billion, or 59 cents a share, in the same quarter a year earlier.

Analysts on average had expected a profit of 76 cents a share, according to Refinitiv’s IBES estimate.

(Reporting by Niket Nishant, Noor Zainab Hussain and Manya Saini in Bengaluru and Elizabeth Dilts Marshall in New York; Spanish editing by Marion Giraldo)



Reference-www.infobae.com

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