What happened
The American economy is in pretty good shape if the first earnings report of this year from one of its major banks is any indication. On Wednesday, Bank of America (BAC 1.72%) reported Q4 of 2021 results in which the company notched a convincing earnings beat and showed strength in key areas.
Consequently, investors bid up the stock, which rose by 0.4%, in sharp contrast to the 1% decline of the S&P 500 index.
Image source: Getty Images.
So what
For the quarter, Bank of America's revenue rose by a sturdy 10% year over year to nearly $22.1 billion. Net income saw an even more robust increase, advancing by 27% to almost $6.8 billion, or $0.82 per share.
This was aided by nearly 6% growth in total loans and leases, which amounted to $979 billion. Total deposits, meanwhile, crept up by 5% to slightly more than $2 trillion. What also helped was that the company released $851 million in reserves it previously set aside for pandemic-related losses.
Bank of America also witnessed "record levels of digital engagement, and an improving economy," in the words of CEO Brian Moynihan.
On average, analysts tracking the stock were expecting just over $22.2 billion on the top line, and per-share net income of $0.76.
Now what
2021 might have been an awful year for the planet generally, but Bank of America came through it smelling like a rose. In addition to those encouraging quarterly improvements, it also roped in millions of new credit card accounts during the year and saw big gains in important segments like investment banking and wealth management.
The bank continues to be on a tear. As such, it's very well-positioned for continued improvements if and when the coronavirus pandemic recedes.
