Bank of America Clocks 10% Income Growth In Q3, CEO Highlights Client and Account Additions Across All Business Lines

Bank of America Corp (NYSE:BAC) reported a third-quarter FY23 net income growth of 10% year-over-year to $7.8 billion. EPS for the quarter was $0.90, compared to $0.81 Y/Y, beating the consensus of $0.81.

Revenue increased 3% Y/Y to $25.32 billion, beating the consensus of $25.14 billion.

Segment Net income: Consumer Banking $2.9 billion (-7% Y/Y), Global Wealth and Investment Management $1.0 billion (-13% Y/Y), Global Banking $2.6 billion (+26% Y/Y), and Global Markets $1.2 billion (+17% Y/Y).

Q3 Net interest income was $14.4 billion (+4% Y/Y), driven primarily by benefits from higher interest rates and solid loan growth. Noninterest income was $10.8 billion (+0.5% Y/Y).

Provision for credit losses $1.2 billion, compared to $0.9 billion in Q3 FY22.

The efficiency ratio for the quarter was 63%, compared to 62% in Q3 FY22.

The bank reported a CET1 ratio of 11.6%, up 90 bps from a year ago. Book value per share of $32.65 improved by 9%.

The average loan and lease balance was $1.05 trillion (+1.2% Y/Y). Average deposits are down 4.4% Y/Y to $1.88 trillion.

From Chair and CEO Brian Moynihan: “We added clients and accounts across all lines of business. We did this in a healthy but slowing economy that saw US consumer spending still ahead of last year but continuing to slow. Our growth in revenue and earnings allowed us to continue our investments in our people and technology to drive an enhanced client experience.” 

Price Action: BAC shares are trading higher by 1.00% at $27.26 premarket on the last check Tuesday.