In this article, Bank of America reported results that exceeded expectations for both profit and revenue due to strong performance in investment banking and interest income. The company’s fourth-quarter profit more than doubled to $6.67 billion, or 82 cents per share, compared to the previous year. This increase was attributed to improved investment banking and asset management fees, as well as stronger trading results, leading to a 15% rise in revenue to $25.5 billion.
Notably, investment banking fees surged by 44% to $1.65 billion, surpassing analyst expectations by approximately $180 million. However, the trading operations of Bank of America did not significantly outperform expectations during the quarter. Fixed income revenue increased by 13% to $2.48 billion, while equities revenue rose by 6% to $1.64 billion, aligning closely with estimates.
Net interest income, a key metric for the company, rose by 3% to $14.5 billion, surpassing estimates by around $170 million. Bank of America’s performance is particularly sensitive to interest rates and their impact on net interest income, making it crucial for investors to monitor the company’s 2025 targets, especially amid expectations of rate adjustments.
While Bank of America’s results were positive, other major banks like JPMorgan Chase and Goldman Sachs also exceeded expectations in their Wall Street units. Investors are eagerly awaiting the results from Morgan Stanley, which are scheduled to be released on Thursday. Two corrections were made to the earlier version of the article: Bank of America’s fourth-quarter profit more than doubled to $6.67 billion, and the company’s equities revenue rose to $1.64 billion.
