What's Going On With Bank Of America (BAC) Shares?

Bank of America Corp BAC shares are trading marginally lower by 1% to $27.04 going into the close of Thursday's session. The company this week exceeded expectations in its third-quarter financial results and received several analyst rating updates afterward.

What Happened?

In the third quarter of FY23, Bank of America reported a 10% year-over-year increase in net income to $7.8 billion, with EPS at $0.90, surpassing the consensus estimate of $0.81.

Revenue also exceeded expectations, rising 3% year-over-year to $25.32 billion, compared to the consensus of $25.14 billion...Read More

See Also: Bank Of America CEO Brian Moynihan Says Consumer Spending Continues To Slow Due To Higher Rates

Why It Matters

Bank of America's net interest income grew by 4% YoY to $14.4 billion, driven by rising interest rates and strong loan growth. This increase in interest rates benefits the bank by allowing higher loan interest charges compared to deposit interest payments.

Robust loan growth suggests the bank's active lending, a key income source. This performance reflects the importance of interest rate trends to investors in assessing bank profitability.

See Also: What's Going On With Verizon (VZ) Stock?

According to data from Benzinga Pro, BAC has a 52-week high of $38.60 and a 52-week low of $25.46.