Bank of America on Thursday it reported results that beat expectations for profit and revenue based on better-than-expected investment banking and interest income.
Here’s what the company reported:
- Earnings: 82 cents vs. 77 cents expected, according to LSEG
- Income: $25.5 billion vs. $25.19 billion expected
The company said fourth-quarter profit more than doubled to $6.67 billion, or 82 cents a share, from a year earlier, when the bank had a $2.1 billion Federal Deposit Insurance Corporation assessment linked to the collapse. regional banks in 2023 and a charge of 1.6 billion dollars related to accounting for interest rate swaps.
Revenue jumped 15% to $25.5 billion due to rising fees from investment banking and asset management and stronger trading results.
Investment banking fees rose 44% to $1.65 billion, roughly $180 million more than analysts expected. That suggests the firm’s bankers had a good end to the year, as CEO Brian Moynihan told investors last month that investment banking fees would jump 25% in the quarter.
Unlike rivals including Goldman SachsBank of America’s trading operations did not significantly exceed expectations during the quarter. Fixed income revenue rose 13% to $2.48 billion, roughly in line with StreetAccount’s estimate, while equity revenue rose 6% to $1.64 billion, also broadly in line with expectations.
But the company said net interest income, one of the most watched numbers for the lender, rose 3% to $14.5 billion, beating estimates by about $170 million.
Perhaps more than other megabanks, the company’s fortunes seem to hinge on rates and their impact on net interest income. Investors will be keen to hear about the company’s 2025 target, especially as expectations for a rate cut are subdued.
On Wednesday, JPMorgan Chase and Goldman beat estimates on better-than-expected results by Wall Street units. Morgan Stanley is also scheduled to report results on Thursday.
Correction: Bank of America’s fourth-quarter profit more than doubled to $6.67 billion. An earlier version misstated that move. Revenue from the company’s stock rose to $1.64 billion. An earlier version misstated the figure.