Bank of America tops expectations as higher rates help offset declines in investment banking

Bank of America reported fourth-quarter results on Friday that topped expectations on the top and bottom lines.

Here are the key metrics compared to what Wall Street expects:

• Earnings: 85 cents per share versus 77 cents a share, according to Refinitiv
• Revenue: $24.66 billion versus $24.3 billion, according to Refinitiv

Shares of Bank of America rose about 1% in premarket trading.

Expectations were running high that Bank of America would post gains in interest income thanks to higher rates and loan growth in the fourth quarter. The bank reported $14.7 billion of net interest income, up 29% year over year but slightly below Wall Street expectations of $14.9 billion, according to StreetAccount.

That gain helped offset a decline in investment banking fees, which fell more than 50% to $1.1 billion. That result was largely in line with expectations, according to StreetAccount.

Bank of America, led by CEO Brian Moynihan, was supposed to be one of the main beneficiaries of the Federal Reserve’s rate-boosting campaign. But bank stocks got hammered last year amid concerns a recession was on the way.

Investors will be eager to see how well the bank’s retail and business customers are holding up. The bank implemented a $1.1 billion provision for credit losses.

In the first few days of the new year, Bank of America’s stock is up 4%.

This is a breaking news story. Please check back for updates.