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

Bank of America Corp BAC shares are trading marginally higher by 0.6% to $27.78 Wednesday morning. The company on Tuesday reported 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 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 increased by 4% year-over-year to $14.4 billion, largely due to higher interest rates and robust loan growth. Higher interest rates can lead to increased profitability for banks, as they can charge higher interest on loans relative to what they pay on deposits.

Robust loan growth also indicates that the bank is actively engaged in lending, which is a primary source of income. Investors often take note of interest rate trends and their impact 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.