BofA’s DVA losses inflated to $193m in Q4
Latest hit is largest since 2020, but still leaves positive result for 2022
Debit valuation adjustments (DVAs) to Bank of America’s derivatives portfolio shaved $193 million off the bank’s revenue in the fourth quarter, 14 times as much as in Q3 and the deepest hit since Q2 2020.
Net DVAs – adjustments to derivatives assets and liabilities from changes in the bank’s own creditworthiness – totalled negative $186 million for the fixed income, currencies and commodities division, compared with a $15 million loss in Q3. In the equities division, the loss was $7 million
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