Bank of America joins peers in reporting strong fourth quarter
Bank of America Corp.
$46.70
07:20 30/01/25
Bank of America reported robust fourth-quarter results on Thursday, driven by record trading revenue and a recovery in investment banking fees.
The bank's net income rose to $6.7bn, or 82 cents per share, beating analysts' expectations for 77 cents per share.
Revenue for the quarter reached $25.3bn, surpassing the consensus estimate of $25.1bn.
The results reflected broad-based strength across BofA’s business segments.
Trading revenue surged 13% year-on-year to $4.1bn in the fourth quarter, bolstered by market volatility stemming from the US presidential election and a favourable equity market environment.
For the full year, trading revenue reached a record $18.8bn.
The equities division grew by 6%, while fixed income, currencies, and commodities (FICC) saw a 13% increase.
BofA’s performance aligned with strong trading results reported earlier in the week by peers including JPMorgan and Goldman Sachs.
Investment banking fees also rebounded sharply, jumping 44% in the fourth quarter compared to the same period in 2023.
Revenue from mergers and acquisitions rose 47%, while equity underwriting more than doubled, reflecting increased corporate refinancing activity.
The bank finished third in global investment banking league tables with a market share of 6.2%, up from 5.9% the prior year.
Net interest income (NII), a critical metric for banks, grew 3% year-on-year to $14.4bn in the fourth quarter, exceeding analyst forecasts.
That marked the first annual increase in NII since the third quarter of 2023, supported by loan growth and fixed-rate asset repricing.
BofA said it expected NII to continue climbing through 2025, with first-quarter guidance set at $14.5bn to $14.6bn, and a year-end target as high as $15.7bn.
“We finished 2024 with a strong fourth quarter,” said chief executive officer Brian Moynihan.
“Every source of revenue increased, and we saw better than industry growth in deposits and loans.
“We believe this broad momentum sets up 2025 very well for Bank of America.”
At 0744 EST (1244 GMT), shares in Bank of America Corporation were down 0.17% in premarket trading in New York, at $47.02.
Reporting by Josh White for Sharecast.com.