Summary
Bank of America Corporation (BAC) reported a solid financial performance for the fiscal year ended December 30, 2023, characterized by increased net interest income, reflecting benefits from higher interest rates and loan growth. Despite a slight decrease in net income compared to the prior year, primarily due to higher noninterest expenses and provisions for credit losses, the company maintained a strong capital position. Key developments during the period included a substantial FDIC special assessment charge and a non-cash charge related to the cessation of the BSBY index. The company continued its capital return strategy through dividends and share repurchases, underscoring its commitment to shareholder value while navigating a dynamic economic environment marked by elevated interest rates and geopolitical uncertainties.
Financial Highlights
35 data points| Revenue | $98.58B |
| Interest Expense | $73.33B |
| Net Income | $26.52B |
| EPS (Basic) | $3.10 |
| EPS (Diluted) | $3.08 |
| Shares Outstanding (Basic) | 8.03B |
| Shares Outstanding (Diluted) | 8.08B |
Key Highlights
- 1Net interest income increased by $4.5 billion to $56.9 billion in 2023, driven by higher interest rates and loan growth.
- 2Total revenue, net of interest expense, increased to $98.6 billion in 2023 from $95.0 billion in 2022.
- 3Noninterest expense increased by $4.4 billion to $65.8 billion, primarily due to increased investments in personnel and technology, along with a significant FDIC special assessment.
- 4Provision for credit losses rose by $1.9 billion to $4.4 billion, largely driven by the consumer portfolio, particularly credit card loans.
- 5Total assets grew by $128.8 billion to $3.2 trillion, primarily due to an increase in cash and cash equivalents.
- 6Common equity tier 1 capital ratio remained strong at 11.8% under the Standardized approach as of December 31, 2023.
- 7The company declared a quarterly common stock dividend of $0.24 per share, payable in March 2024.