(Reuters) – Bank of America Corp. reported a jump in fourth-quarter profit on Wednesday, benefiting from loan growth and a frenetic pace of global dealmaking activity that helped propel its investment banking business.
Bank of America, along with other high street lenders such as JPMorgan Chase & Co and Wells Fargo & Co, are expected to benefit from upcoming interest rate hikes in 2022, after nearly two years of low rates that led to Erosion of bank income from loans.
The second largest US bank by assets is more sensitive to fluctuations in interest rates than its peers, due to the composition of its balance sheet.
During the year, the investment bank of Bank of America seized the global M&A boom to turn a healthy profit, as investment banks closed record volumes of mergers, undertook many initial public offerings, and advised on deals involving special purpose buyouts.
For the quarter ended December 31, the bank reported revenue, net of interest expense, of $22.1 billion, up 10% from a year ago.
Earnings rose to $6.77 billion, or 82 cents a share, from $5.21 billion, or 59 cents a share, a year ago.
Analysts, on average, expected a profit of 76 cents per share, according to IBES estimates from Refinitiv.
(Reporting by Nikit Nishant, Noor Zainab Hussain and Manya Saini in Bengaluru and Elizabeth Dilts Marshall in New York; Editing by Anil de Silva)
Copyright 2022 Thomson Reuters.