Sector: Financials|Industry: Banks - Diversified|Market Cap: $360.63B|Employees: 213K
Bank of America Corporation is a leading financial holding company offering a wide range of banking, investing, asset management, and risk management products and services to individual consumers, small and medium-sized businesses, institutional investors, large corporations, and governments globally. Its primary revenue streams are net interest income and noninterest income from fees and commissions, investment banking, and global markets activities. The company's competitive advantages include its extensive global network, strong brand recognition, and diversified product offerings.
Net interest income increased by $4.5 billion to $56.9 billion in 2023, exceeding expectations. This growth was primarily due to higher interest rates and loan growth, partially offset by increased funding costs and lower deposits.
Noninterest income decreased by $838 million to $41.7 billion in 2023. This decline was primarily attributed to lower service charges and investment banking fees, partially offset by increased market making activity and higher interest rates.
The provision for credit losses increased by $1.9 billion to $4.4 billion in 2023, primarily due to higher credit card loan growth and asset quality in the consumer portfolio, partially offset by improved macroeconomic conditions in the commercial portfolio.