Bank of America profits increase on trading boost, anticipates higher interest income in 2025

From Investing.com: 2025-01-16 07:42:06

Bank of America reported a higher profit for Q4 as traders benefited from market activity. CEO Brian Moynihan stated all revenue sources increased, setting up a strong 2025. Net income rose to $6.7 billion, beating expectations. Shares rose 2.7% in premarket trading. Sales and trading revenue increased 10% with equity markets up 6% and fixed income up 13%.

BofA’s investment banking fees surged 44% in Q4, but overall net income for global banking fell due to higher expenses. Global investment banking revenue jumped 26% to $86.80 billion, with BofA ranking third in revenue globally. NII rose 3% to $14.4 billion, beating forecasts, marking the first growth since Q3 2023.

BofA expects NII to continue growing in 2025, reaching $14.5-$14.6 billion in Q1. The bank anticipates further growth throughout the year, reaching $15.5-$15.7 billion in Q4. CEO Moynihan expects NII to benefit from fixed-rate asset repricing and a steeper yield curve. BofA stock gained 30.5% in 2024, underperforming rivals and the index.



Read more at Investing.com: BofA profit jumps on trading boost, sees higher 2025 interest income By Reuters