Bank of America Reports Q4 2024 Earnings with 48% Increase

Bank of America Reports Q4 2024 Earnings with 48% Increase

Bank of America reported a robust financial performance for the final quarter (Q4) of 2024, with its Global Markets segment showing significant growth in net income compared to the same period last year. The segment posted a net income of $941 million, up 48% from $636 million in the fourth quarter of 2023. This was driven by a substantial 18% year-on-year increase in revenue, which reached $4.8 billion, largely fueled by higher sales and trading revenue as well as increased investment banking fees.

Bank of America Reports Strong Q4 2024 Earnings with 48% Increase

The sales and trading revenue saw a 13% increase to $4.1 billion, with FICC (Fixed Income, Currencies, and Commodities) revenue surging 19% to $2.5 billion, supported by strong performance in macro products and credit markets. Equities revenue grew by 7%, reaching $1.6 billion, as a result of improved trading performance and stronger client activity.

Despite a 7% rise in noninterest expenses, which amounted to $3.5 billion due to increased revenue-related costs and investments in technology, the overall results were positive. Net income for all segments combined was $6.7 billion, or $0.82 per diluted share, more than double the $3.1 billion, or $0.35 per diluted share, recorded in Q4 2023.

Net interest income (NII) reached $14.4 billion, reflecting a 3% increase from both the previous quarter and the same quarter last year. This growth was due to Global Markets activity, fixed-rate asset repricing, and loan growth, although partially offset by the effects of lower interest rates.

Chair and CEO Brian Moynihan expressed confidence in the company’s future: “We finished 2024 with a strong fourth quarter. Every source of revenue increased, and we saw better-than-industry growth in deposits and loans. We also ended with strong capital and liquidity, enabling us to return $21 billion to shareholders in 2024. This momentum positions us well for 2025.”

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