Bank of America Corporation reported its financial performance for the year, with a net income of $26.5 billion, or $3.08 per diluted share, compared to $27.5 billion, or $3.19 per diluted share in the previous year. The decrease in net income was primarily due to higher noninterest expense and provision for credit losses, partially offset by higher net interest income. Net interest income increased by $4.5 billion to $56.9 billion, driven by benefits from higher interest rates and loan growth, partially offset by higher funding costs and lower deposits. Noninterest income decreased by $838 million to $41.7 billion, with service charges and investment and brokerage services seeing declines, while market making and similar activities increased. The provision for credit losses rose by $1.9 billion to $4.4 billion, driven by consumer...Show More

Bank of America Corporation reported its financial performance for the year, with a net income of $26.5 billion, or $3.08 per diluted share, compared to $27.5 billion, or $3.19 per diluted share in the previous year. The decrease in net income was primarily due to higher noninterest expense and provision for credit losses, partially offset by higher net interest income. Net interest income increased by $4.5 billion to $56.9 billion, driven by benefits from higher interest rates and loan growth, partially offset by higher funding costs and lower deposits. Noninterest income decreased by $838 million to $41.7 billion, with service charges and investment and brokerage services seeing declines, while market making and similar activities increased. The provision for credit losses rose by $1.9 billion to $4.4 billion, driven by consumer portfolio credit card loan growth and asset quality, partially offset by improved macroeconomic conditions benefiting the commercial portfolio. Noninterest expense increased by $4.4 billion to $65.8 billion, primarily due to investments in technology and higher FDIC expense, including a $2.1 billion estimated special assessment amount. The effective tax rate was 6.4 percent, down from 11.1 percent, driven by recurring tax preference benefits and charges related to the FDIC special assessment and BSBY's future cessation. Total loans and leases increased by $8.0 billion, with commercial loans and leases seeing a slight increase and consumer loans excluding loans accounted for under the fair value option increasing by 1.85 percent. The allowance for credit losses increased to $14.6 billion, reflecting a reserve build in the consumer portfolio driven by credit card loan growth and asset quality.