Bank of America tops estimates on better-than-expected investment banking, interest income

Key Points

  • Bank of America's Q4 profit soared 47% to $6.67 billion, driven by strong investment banking and interest income.
  • Revenue increased by 15% to $25.5 billion, surpassing expectations due to higher fees from investment banking and asset management.

Summary

Bank of America reported a robust fourth-quarter performance, with earnings and revenue exceeding expectations. The bank's profit rose by 47% to $6.67 billion, or 82 cents per share, significantly influenced by a year-ago FDIC assessment and charges related to interest rate swaps. Revenue for the quarter was up 15% to $25.5 billion, buoyed by a 44% surge in investment banking fees to $1.65 billion, which was well above analyst predictions. Despite not significantly outperforming in trading like some rivals, Bank of America's fixed income and equities trading revenues met expectations. Net interest income, a critical metric for the bank, increased by 3% to $14.5 billion, surpassing estimates. This performance highlights the bank's reliance on interest rates, with investors now looking forward to the company's 2025 targets amidst shifting expectations for rate cuts.

cnbc
January 16, 2025
Stocks
Read article

Related news