BofA joins other banks’ profit trends with the rise of interest rates.


“Net income rose 15% to $8.2 billion, or $0.94 per diluted share, compared to $7.1 billion, or $0.80 per diluted share for Q1-22”

The estimate for Q1 23 was $0.81 per diluted share.

“Revenue of $10.7 billion improved 21%, due to increased NII driven by higher interest rates and loan balances, partially offset by the impact of reduced customer non-sufficient funds and overdraft fees”

Banks clearly benefit tremendously from the rise of interest rates. The two banks that recently crashed were due to the large pool of spooked depositors withdrawing money from banks that had a high total percentage of deposits that were uninsured by the FDIC. It appears that the banking sector is one of the very few market sectors that outshine during this rising interest rate environment.

https://d1io3yog0oux5.cloudfront.net/_2021dc618f98acb48cb37faa72a1ad9d/bankofamerica/db/806/9848/earnings_release/The+Press+Release_1Q23.pdf


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