Bank of America connected Wednesday posted fourth-quarter net that topped analysts' expectations connected gains from nett involvement income and equities trading.
Here's what the institution reported:
- Earnings: 98 cents per stock vs. 96 cents expected, according to LSEG
- Revenue: $28.53 cardinal vs. $27.94 cardinal expected
The institution said nett roseate 12% from a twelvemonth earlier to $7.6 billion, oregon 98 cents per share. Revenue climbed 7.1% to $28.53 billion, acknowledgment to rising nett involvement income, plus absorption fees and trading revenue.
Shares of the slope fell much than 3% successful aboriginal trading.
"With consumers and businesses proving resilient, arsenic good arsenic the regulatory situation and taxation and commercialized policies coming into sharper focus, we expect further economical maturation successful the twelvemonth ahead," CEO Brian Moynihan said successful the release. "While immoderate fig of risks continue, we are bullish connected the U.S. system successful 2026."
Net involvement income, which is the quality successful what a slope earns connected loans and securities and what it pays depositors for their savings, roseate 9.7% to $15.92 cardinal successful the quarter. That is astir $240 cardinal much than what analysts had expected, per StreetAccount.
The slope besides gave caller guidance connected nett involvement income, saying that it would turn 5% to 7% successful 2026.
Equities trading gross roseate 23% to $2.02 billion, oregon astir $160 cardinal much than expected. Fixed income trading gross edged up by 1.5% to $2.52 billion, oregon astir $120 cardinal beneath what analysts had forecast for the quarter.
Fees generated by the firm's concern bankers were astir level from a twelvemonth agone astatine $1.67 billion, astir matching the StreetAccount estimate.
The lender got a boost from a smaller-than-expected proviso for indebtedness losses successful the 4th of $1.31 billion, astir $190 cardinal little than analysts had forecast.
Bank of America, the second-largest U.S. slope by assets aft JPMorgan Chase, has been a beneficiary of the industry's caller process winds. Falling involvement rates, rising Wall Street trading and advisory fees, unchangeable user credit, and deregulation person each helped the lender, whose shares roseate 25% past year.
Analysts volition privation to perceive much from Moynihan arsenic to whether momentum volition transportation into 2026.
On Tuesday, JPMorgan posted results that exceeded expectations connected better-than-expected trading revenue. Citigroup and Wells Fargo besides study results Wednesday, portion Goldman Sachs and Morgan Stanley volition merchandise results Thursday.
This communicative is developing. Please cheque backmost for updates.
Correction: Bank of America's shares roseate 25% past year. An earlier mentation misstated the percentage.
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