Financial institution of America (BAC) earnings This fall 2024

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

Financial institution of America on Thursday posted outcomes that topped expectations for revenue and income on better-than-expected funding banking and curiosity earnings.

This is what the corporate reported:

Earnings: 82 cents vs. 77 cents anticipated, in accordance with LSEG
Income: $25.5 billion vs. $25.19 billion anticipated

The corporate stated fourth-quarter revenue greater than doubled to $6.67 billion, or 82 cents per share, from a yr earlier, when the financial institution had a $2.1 billion Federal Deposit Insurance coverage Corp. evaluation tied to the 2023 regional financial institution failures and a $1.6 billion cost tied to accounting on rate of interest swaps.

Income jumped 15% to $25.5 billion on rising charges from funding banking and asset administration and stronger buying and selling outcomes.

Funding banking charges surged 44% to $1.65 billion, roughly $180 million greater than analysts had anticipated. That signifies the corporate’s bankers had a robust finish to the yr, as simply final month, CEO Brian Moynihan instructed traders that funding banking charges would leap 25% within the quarter.

Not like with rivals together with Goldman Sachs, Financial institution of America’s buying and selling operations did not considerably exceed expectations in the course of the quarter. Fastened earnings income rose 13% to $2.48 billion, roughly consistent with the StreetAccount estimate, whereas equities income rose 6% to $1.64 billion, additionally basically matching expectations.

However the agency stated that internet curiosity earnings, one of the vital watched figures for the lender, rose 3% to $14.5 billion, exceeding estimates by about $170 million.

Maybe greater than different megabanks, the agency’s fortunes appear to hinge on charges and their affect on internet curiosity earnings. Traders will likely be eager to listen to in regards to the firm’s goal for 2025, particularly as expectations for charge cuts have been reined in.

On Wednesday, JPMorgan Chase and Goldman topped estimates on better-than-expected outcomes from Wall Road models. Morgan Stanley can also be scheduled to submit outcomes Thursday.

Correction: Financial institution of America’s fourth-quarter revenue greater than doubled to $6.67 billion. An earlier model misstated the transfer. The corporate’s equities income rose to $1.64 billion. An earlier model misstated the determine.