Bank of America Tops Profit Estimates on Investment Banking Surge and Strong Loan Growth

Finance News

Bank of America Tops Profit Estimates on Investment Banking Surge and Strong Loan Growth
BANK OF AMERICAEARNINGSPROFIT
  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 96 sec. here
  • 11 min. at publisher
  • 📊 Quality Score:
  • News: 70%
  • Publisher: 50%

Bank of America reports fourth-quarter earnings that surpass analysts' expectations, driven by a significant increase in investment banking fees and robust net interest income. The bank also highlights strong growth in deposits and loans, signaling a positive outlook for the US economy.

Bank of America Corp. reported fourth-quarter profit that exceeded analysts' expectations, driven by a surge in investment-banking fees and strong net interest income. Investment-banking fees soared 43% to $1.69 billion in the fourth quarter, while net interest income rose 3% to $14.4 billion, surpassing forecasts. CEO Brian Moynihan stated that all revenue sources experienced growth, with deposits and loans expanding at a rate faster than the industry average.

Bank of America's performance reflects the health of US consumers and businesses as the Federal Reserve initiates its first interest rate reductions in nearly half a decade. While lenders' balance sheets have remained resilient overall, uncertainties persist regarding geopolitical tensions and potential changes under President-elect Donald Trump's administration.The second-largest US lender reported growth in both deposits and loans during the fourth quarter, exceeding expectations. Bank of America's loans reached nearly $1.1 trillion, surpassing the estimated $1.08 trillion. Lending has been a key focus for investors, anticipating lower interest rates to fuel borrowing as it becomes more affordable. Deposits also witnessed a 2.2% increase to almost $1.97 trillion, outperforming analysts' projections of a 1.2% rise.The company's robust performance in investment banking further contributed to non-interest income, which climbed 37% to nearly $11 billion. Sales and trading also demonstrated strong momentum, growing 10% to $4.13 billion during a period of volatile market fluctuations driven by changing interest rates and the US election. This marked a record fourth quarter for the unit. On Wednesday, JPMorgan Chase & Co. and Goldman Sachs Group Inc. also reported earnings that surpassed analysts' estimates, highlighting a surge in investment banking and trading as key drivers of record results. Both banks anticipate the incoming presidential administration to ease regulatory oversight. In early New York trading, shares of Charlotte, North Carolina-based Bank of America climbed 0.4% at 7:25 a.m. Looking ahead, the bank projects further growth for key metrics, including net interest income. The firm anticipates NII of $14.5 billion to $14.6 billion in the first quarter of 2025, rising to $15.5 billion to $15.7 billion in the fourth quarter, according to a presentation Thursday

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

BNNBloomberg /  🏆 83. in CA

BANK OF AMERICA EARNINGS PROFIT INVESTMENT BANKING LOAN GROWTH INTEREST RATES FEDERAL RESERVE ECONOMIC OUTLOOK

Malaysia Latest News, Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

National Bank Q4 Profit Declines Amid Rising Credit LossesNational Bank Q4 Profit Declines Amid Rising Credit LossesNational Bank reports lower fourth-quarter profit compared to the previous year, citing increased provision for credit losses. Revenue rose but adjusted earnings per share fell significantly.
Read more »

Bank Reports Fall in Q4 Profit Amidst Acquisition PlansBank Reports Fall in Q4 Profit Amidst Acquisition PlansThe bank's fourth-quarter profit declined compared to the previous year, primarily due to an increase in credit loss provisions. Despite this, the acquisition by National Bank of Canada is progressing, awaiting regulatory approvals.
Read more »

CWB Financial Reports Q4 Profit Decline, National Bank Takeover on TrackCWB Financial Reports Q4 Profit Decline, National Bank Takeover on TrackCWB Financial Group reports a decrease in fourth-quarter profit while affirming the progress of its acquisition by National Bank. The bank also addresses a legal claim against a subsidiary and its impact on financial reporting.
Read more »

Canadian Western Bank Posts Lower Profit Amidst Trucking Industry DownturnCanadian Western Bank Posts Lower Profit Amidst Trucking Industry DownturnCanadian Western Bank reported a lower than expected fourth-quarter profit due to increased provisions for potential loan defaults. The bank attributes the issue partly to declining valuations in the trucking industry, which is expected to impact CWB's finances for the next few years. Despite this, CWB maintains that the recent sale to National Bank of Canada will proceed as planned in early 2024.
Read more »

National Bank gets final approval for Canadian Western Bank takeoverNational Bank gets final approval for Canadian Western Bank takeoverNational Bank of Canada's $5-billion takeover of Canadian Western Bank has cleared its final regulatory hurdle.
Read more »

National Bank gets final approval for Canadian Western Bank takeoverNational Bank gets final approval for Canadian Western Bank takeoverNational Bank of Canada says it’s received approval from the federal finance minister to acquire Canadian Western Bank.
Read more »



Render Time: 2025-02-13 19:59:19