Bank of America (BAC) Q4 2024 Earnings

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

Here’s what the company said:

• income: 82 cents vs. 77 cents expected, LSEG said
• 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 Corp. estimate pegged to regional bank failures in 2023 and $1.6 billion in foreclosures. tied to accounting for interest rate swaps.

Profit jumped 15% to $25.5 billion thanks to higher investment banking and asset management fees and stronger trading results.

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

Unlike competitors including Goldman SachsBank of America trading 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 firm said net interest income, one of the lender’s most popular metrics, rose 3% to $14.5 billion, beating estimates by about $170 million.

Perhaps more than other megabanks, the firm’s wealth depends on rates and their impact on net interest income. Investors will be interested to learn about the company’s 2025 targets, especially as expectations for rate cuts have been limited.

on wednesday JPMorgan Chase and Goldman beat estimates on better-than-expected results from Wall Street units. Morgan Stanley also plans to report results on Thursday.

Correction: Bank of America’s fourth quarter profit more than doubled to $6.67 billion. An earlier version got this step wrong. The company’s earnings per share rose to $1.64 billion. An earlier version misstated the number.