Bank of America revenue jumps 11% on higher net interest income

Bank of America Corp
BAC,
+0.26%

stock rose 0.3% in premarket trades Friday after the financial firm beat its earnings and revenue targets because it benefitted from higher rates of interest on its loans. Bank of America said it earned $7.1 billion, or 85 cents a share within the fourth quarter, in comparison with $7 billion, or 82 cents a share, within the year-ago quarter. Revenue, net of interest expense, increased by 11% to $24.5 billion. Wall Street analysts expected earnings of 77 cents a share on revenue of $24.17 billion, in keeping with data compiled by FactSet. Net interest income rose 29%, or $3.3 billion, to $14.7 billion, “driven by advantages from higher rates of interest, including lower premium amortization expense, and solid loan growth,” the bank said.

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