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Bank of America on Thursday it posted results that exceeded expectations for profit and income on investment banking and better than expected interest income.
Here’s what the company said:
- Earnings: 82 cents vs. 77 cents expected, according to LSEG
- Revenue: $25.5 billion versus $25.19 billion expected
The company said fourth-quarter profit more than doubled to $6.67 billion, or 82 cents a share, from a year earlier, when the bank had a $2.1 billion valuation of Federal Deposit Insurance Corp. . linked to regional bank failures by 2023 and a charge of $1.6 billion. related to accounting on interest rate swaps.
Revenue jumped 15% to $25.5 billion on rising fees from investment banking and asset management and stronger trading results.
Investment banking fees rose 44% to $1.65 billion, about $180 million more than analysts had expected. This indicates that the company’s bankers had a strong end to the year, as last month CEO Brian Moynihan told investors that investment banking fees would jump 25% in the quarter .
Unlike with rivals included 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 meeting expectations.
But the firm said net interest income, one of the most watched figures for the lender, rose 3% to $14.5 billion, beating estimates of about $170 million.
Perhaps more than other megabanks, the company’s fortunes seem to depend on taxes and their impact on net interest income. Investors will be keen to hear about the company’s target for 2025, especially since expectations for tax cuts have been cooled.
Wednesday, JPMorgan Chase and Goldman beat estimates on better-than-expected results from Wall Street units. Morgan Stanley is also scheduled to release results on Thursday.
Correction: Bank of America’s fourth-quarter profit more than doubled to $6.67 billion. An earlier version got the move wrong. The company’s stock revenue increased to $1.64 billion. An earlier version got the figure wrong.
