Bank of America Reports 15.49% YoY Increase in Net Income for Q1 2023

Bank of America has released the financial results for the first quarter of 2023, unveiling that the bank’s every business segment performed well as it grew client relationships and accounts organically.

The net income for Q1 2023 reached $8.2 billion, up 15.49% compared to $7.1 billion in Q1 2022, with diluted earnings per share (EPS) growing from $0.80 to $0.94. Net interest income was $14.4 billion, $2.9 billion higher over the last same period, driven by benefits from higher interest rates and solid loan growth.

The quarterly total revenue, net of interest expense stood at $26.3 billion, rising 13.36% from Q1 2022’s $23.2 billion. Pretax income went up 15.19% on a yearly basis to $9.1 billion. Provision for credit losses has dropped from the prior quarter’s $1.1 billion to $0.9 billion.

"Led by 13% year-over-year revenue growth, we delivered our seventh straight quarter of operating leverage. We further strengthened our balance sheet and maintained strong liquidity," said Chair and CEO Brian Moynihan.

Common equity tier 1 (CET1) ratio for the quarter was 11.4%, up 14 bps from Q4 2022. The bank ended the period with $1.9 trillion deposit balances, $20 billion lower over the previous quarter.

Specifically, Consumer Banking has generated net income of $3.1 billion, up 4% on a yearly basis, driven by strong revenue growth and continued investments in the business. Net income from Global Banking and Global Markets came in at 2.6 billion and $1.7 billion, increasing 48% and 6% respectively. But the net income from Global Wealth and Investment Management decreased 19% to $917 million.

In January, Fazzaco reported that Bank of America achieved a net income of $7.1 billion for Q4 2022​, compared to Q4 2021's $7.0 billion.