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

Bank of America Corp BAC shares are trading slightly lower by 0.63% to $26.15 Monday morning. The stock has fallen roughly 4% in the trailing five sessions despite the company last week reporting better-than-expected third-quarter financial results.

The company also received a number of analyst rating updates following the earnings print.

What Happened?

In the third-quarter FY23, Bank of America posted strong financial results, with a 10% YoY increase in net income to $7.8 billion and EPS of $0.90, which outperformed the expected EPS of $0.81.

Additionally, the bank's revenue exceeded expectations, growing by 3% YoY to $25.32 billion, surpassing the anticipated revenue 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 saw a 4% YoY increase in net interest income to $14.4 billion in part due to higher interest rates and strong loan growth. This is significant for the bank's profitability because higher interest rates allow them to charge more for loans than they pay on deposits.

Robust loan growth also suggests the bank is actively lending, which is a key source of income. Investors closely monitor interest rate trends for their effects on banks' profitability.

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

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