Brian Moynihan, CEO of Bank of America, speaks on CNBC's Squawk Box at the World Economic Forum's annual meeting in Davos, Switzerland, on January 16, 2024.
Adam Galese | CNBC
Bank of America On Thursday, it posted better-than-expected earnings and revenue results thanks to better-than-expected investment banking and interest income.
Here is what the company said:
- Earnings: 82 cents versus 77 cents expected, according to LSEG
- profit: $25.5 billion versus $25.19 billion expected
The company said fourth-quarter earnings doubled to $6.67 billion, or 82 cents per share, from a year earlier, when the bank took a $2.1 billion Federal Deposit Insurance Corporation valuation tied to the failure of regional banks in 2023 and a $1.6 billion charge. Related to the accounting for interest rate swaps.
Revenue jumped 15% to $25.5 billion due to higher fees from investment banking and asset management and strong trading results.
Investment banking fees rose 44% to $1.65 billion, about $180 million more than analysts expected. That suggests the company's bankers are off to a strong end to the year, with CEO Brian Moynihan telling investors last month that investment banking fees would jump 25% in the quarter.
Unlike competitors 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 estimates, while equity revenue rose 6% to $1.64, also essentially in line with expectations.
But net interest income, one of the most closely watched numbers for the bank, rose 3% to $14.5 billion, beating estimates by about $170 million, the company said.
Perhaps more than other major banks, the company's fortunes appear to hinge on interest rates and their impact on net interest income. Investors will be keen to hear the company's 2025 target, especially with expectations of interest rate cuts muted.
Wednesday, JPMorgan Chase Goldman Sachs topped estimates thanks to better-than-expected results for its Wall Street units. Morgan Stanley is also scheduled to report its results on Thursday.
This story is evolving. Please check back for updates.
