Bank of America has announced its fourth-quarter earnings, exceeding analysts’ expectations driven by gains in net interest income and equities trading. The bank reported earnings of 98 cents per share, surpassing the analysts’ estimate of 96 cents. Revenue for the quarter reached $28.53 billion, significantly above the anticipated $27.94 billion.
Comparing year-over-year figures, profit at Bank of America grew by 12% to $7.6 billion, or 98 cents per share. Revenue increased by 7.1%, fueled by higher net interest income and robust trading performance. Following the announcement, shares of the bank rose approximately 1% in premarket trading.
CEO Brian Moynihan expressed optimism regarding the economic landscape, stating, “With consumers and businesses proving resilient, as well as the regulatory environment and tax and trade policies coming into sharper focus, we expect further economic growth in the year ahead.” He further indicated a positive outlook for the U.S. economy in 2026, despite ongoing risks.
A key factor in the bank’s performance was net interest income, which saw a 9.7% increase to $15.92 billion this quarter. This figure exceeded analysts’ expectations by roughly $240 million. Additionally, equities trading revenue surged by 23% to $2.02 billion, outperforming predictions by about $160 million. However, fixed income trading revenue saw a modest rise of 1.5% to $2.52 billion, falling short of analysts’ forecasts by approximately $120 million.
Investment banking fees remained stable year-over-year at $1.67 billion, closely aligning with estimates from StreetAccount. The bank’s provision for loan losses was lower than anticipated at $1.31 billion, about $190 million below analysts’ projections, contributing positively to its overall earnings.
As the second-largest bank in the U.S. by assets, trailing only JPMorgan Chase, Bank of America is benefiting from favorable industry trends, including falling interest rates, increased Wall Street trading, stable consumer credit, and regulatory easing. The bank’s shares rose 24% last year, reflecting this positive trajectory.
Market analysts are eager to hear more insights from Moynihan regarding whether this momentum will sustain into 2026. On the heels of Bank of America’s strong performance, both Citigroup and Wells Fargo are set to announce their earnings, while Goldman Sachs and Morgan Stanley will follow shortly. This story is still unfolding, and further updates are anticipated.
