Home Finance Bank of America (BAC) Q4 2024 earnings

Bank of America (BAC) Q4 2024 earnings

by Eclipsnews
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Bank of America beats expectations for better-than-expected investment banking and interest income

Bank of America posted results on Thursday that beat expectations for profit and revenue from better-than-expected investment banking and interest income.

This is what the company reported:

  • Income: 82 cents versus 77 cents expected, according to LSEG
  • Gain: $25.5 billion versus $25.19 billion expected

The company said fourth-quarter profit more than doubled to $6.67 billion, or 82 cents per share, from a year earlier, when the bank accepted a notice of assessment from the Federal Deposit Insurance Corp. of $2.1 billion related to the 2023 regional bank failures and a charge of $1.6 billion. tied to the accounting for interest rate swaps.

Revenue rose 15% to $25.5 billion on rising investment banking and asset management fees and stronger trading results.

Investment banking costs rose 44% to $1.65 billion, about $180 million more than analysts expected. That signals the company’s bankers had a strong end to the year, as last month CEO Brian Moynihan told investors that investment banking fees would rise 25% in the quarter.

Unlike rivals including Goldman SachsBank of America’s trading activity 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 essentially 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 success appears to depend on interest rates and their impact on net interest income. Investors will be eager to hear what the company’s 2025 target is, especially now that expectations for rate cuts have subsided.

On Wednesday, JPMorgan Chase and Goldman beat estimates of Wall Street firms’ better-than-expected results. Morgan Stanley will also release results on Thursday.

Correction: Bank of America’s fourth-quarter profit more than doubled to $6.67 billion. In an earlier version the move was displayed incorrectly. The company’s stock earnings rose to $1.64 billion. An earlier version displayed the figure incorrectly.

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