Bank of America on Thursday, it posted results that beat earnings and revenue expectations on the back of better-than-expected investment banking and interest income.
Here's what the company said:
- Profits: According to LSEG, 82 cents against the expected 77 cents
- Income: $25.5 billion against the expected $25.19 billion
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 valuation from the Federal Deposit Insurance Corp. linked to the bankruptcy regional banks in 2023 and a fee of $1.6 billion. related to the settlement of interest rate swaps.
Revenue rose 15% to $25.5 billion on rising investment banking and asset management fees and improved trading performance.
Investment banking fees rose 44% to $1.65 billion, about $180 million more than analysts expected. That means the company's bankers had a strong end to the year, as just last month CEO Brian Moynihan told investors that investment banking fees would increase 25% this quarter.
Unlike rivals including Goldman SachsBank of America's trading business did not significantly exceed expectations this quarter. Fixed income revenue rose 13% to $2.48 billion, roughly in line with StreetAccount estimates, 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 closely watched numbers for a lender, rose 3% to $14.5 billion, beating estimates by about $170 million.
Perhaps more than other megabanks, the company's fortunes appear to hinge on interest rates and their impact on net interest income. Investors will be eager to hear information about the company's 2025 target, especially as expectations for interest rate cuts have been subdued.
on Wednesday, JPMorgan Chase and Goldman topped estimates for better-than-expected results from Wall Street units. Morgan Stanley will also publish its results on Thursday.
Correction: Bank of America's fourth-quarter profit more than doubled to $6.67 billion. An earlier version incorrectly described this move. The company's equity revenue rose to $1.64 billion. An earlier version incorrectly reported this number.
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