Bank of America Earnings Rise on Higher Rates and Wall Street Gains But Some Warning Signs Emerge

Bank of America's third quarter profit rose 10% year-over-year to $7.8 billion driven by higher interest income and strong Wall Street performance.

Revenue was up 3% to $25.2 billion. Net interest income grew 4% due to higher rates.

Trading and investment banking revenues increased as dealmaking starts to recover.

BofA stock has lagged peers like JPMorgan and Citigroup in 2022 amid concerns over its bond portfolio.

Net charge-offs rose 79% signaling some customers are struggling with higher rates. Provisions for credit losses also increased.