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304 North Cardinal St.
Dorchester Center, MA 02124
Brian Moynihan, CEO of Bank of America, speaking on CNBC’s Squawk Box at the WEF annual meeting in Davos, Switzerland, on January 16, 2024.
Adam Galici | CNBC
bank of america on Thursday it posted results that beat earnings and revenue expectations thanks to better-than-expected investment banking and interest income.
This is what the company reported:
- Earnings: 82 cents vs. 77 cents expected, according to LSEG
- Revenue: $25.5 billion vs. $25.19 billion expected
The company said fourth-quarter earnings 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 Corporation assessment tied to it. to regional bank bankruptcies in 2023 and a charge of $1.6 billion. linked to the accounting of interest rate swaps.
Revenue increased 15% to $25.5 billion due 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 indicates the company’s bankers had a strong end to the year, as just last month, CEO Brian Moynihan told investors that investment banking fees would increase 25% in the quarter.
Unlike its rivals, including Goldman SachsBank of America’s business operations 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 essentially in line with expectations.
But the firm said net interest income, one of the lender’s most closely watched figures, rose 3% to $14.5 billion, beating estimates by about $170 million.
Perhaps more than other megabanks, the company’s fortunes appear to depend on rates and their impact on net interest income. Investors will be interested to know the company’s 2025 target, especially as expectations for rate cuts have been kept in check.
On Wednesday, JPMorgan Chase and Goldman beat estimates thanks to better-than-expected results from Wall Street units. Morgan Stanley will also release its results on Thursday.
This story is developing. Please check back for updates.
