RTTNews | Jan 19, 2022 07:10AM EST

07:10 Wednesday, January 19, 2022 (RTTNews.com) - Bank of America Corp. (BAC) reported Thursday that net income applicable to common shareholders for the fourth quarter grew 30 percent to $6.77 billion from last year's $5.21 billion, with earnings per share increasing to $0.82 from $0.59 in the prior year, reflecting strong operating leverage as revenues grew faster than expenses.

On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.76 per share for the quarter. Analysts' estimates typically exclude special items.

The provision for credit losses improved by $542 million to a benefit of $489 million, driven by asset quality and macroeconomic improvements, partially offset by loan growth; net reserve release of $851 million.

Total revenue, net of interest expense, increased 10 percent to $22.06 billion from $20.10 billion in the prior-year quarter. Wall Street expected revenues of $22.23 billion for the quarter.

Net interest income was $11.41 billion, up 11 percent from last year, driven by strong deposit growth and related investment of excess liquidity.

Non-interest income also grew 8 percent to $10.65 billion from last year, primarily reflecting record asset management fees and record investment banking revenue.

Noninterest expense increased 6 percent to $14.73 billion, reflecting higher revenue-related incentive compensation, partially offset by lower COVID-19 related costs.

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