NEW YORK, Jan 26 (Reuters) - Bank of America's bonus pool for investment bankers will range from steady to 3% lower for 2023 under pressure from a slowdown in dealmaking, but star performers will get higher payouts, according to a source familiar with the matter.

The company's traders can expect flat or modestly higher bonuses, except for standouts in mortgages and credit, who will receive high single-digit percentage increases over 2022, the source said.

The bank began informing investment bankers and traders about their 2023 bonuses on Friday, the source said. Discretionary compensation at Wall Street banks is highly variable.

Bank of America declined to comment.

The company's trading revenue rose 1% to $3.8 billion in the fourth quarter, driven by a 12% jump in revenue from equities, while a pickup in dealmaking in the fourth quarter pushed up investment banking fees 7% to $1.1 billion.

Wall Street giants face a challenging environment beset by subdued dealmaking, economic uncertainty and geopolitical tensions. While major banks have laid off thousands of employees, they are also focused on retaining top talent to capitalize on any resurgence in economic activity.

Goldman Sachs Chief Financial Officer Denis Coleman told a conference last month that compensation expenses will rise by a low-to-mid single-digit percentage this year.

Goldman bosses are considering fatter bonuses to retain star traders and dealmakers this year as the bank looks to win over some who were disappointed by smaller payments in 2022, Reuters reported in November, citing five sources with knowledge of the situation. (Reporting by Saeed Azhar; editing by Lananh Nguyen and Nick Zieminski)