Brian Moynihan, CEO of Bank of America, speaking on CNBC’s Squawk Box at the WEF Annual Meeting in Davos, Switzerland on Jan. 16th, 2024.
Adam Galici | CNBC
Bank of America on Thursday posted results that topped expectations for profit and revenue on better-than-expected investment banking and interest income.
Here’s what the company reported:
- Earnings: 82 cents vs. expected 77 cents LSEG estimate
- Revenue: $25.5 billion vs. expected $25.19 billion
The company said profit jumped 47% to $6.67 billion, or 82 cents per share, from a year earlier, when the bank had a $2.1 billion FDIC assessment tied to the 2023 regional bank failures and a $1.6 billion charge tied to 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 surged 44% to $1.65 billion, roughly $180 million more than analysts had expected. That indicates the company had a strong end to the year, as just last month, CEO Brian Moynihan told investors that investment banking fees would jump 25% in the quarter.
Perhaps more than other megabanks, the firm’s fortunes seem to hinge on rates and their impact on net interest income.
Last month, CEO Brian Moynihan told investors that his firm would hit guidance for NII of about $14.3 billion.
Investors will be keen to hear about the company’s target for 2025, especially as expectations for rate cuts have been reined in.
while wealth management revenue may climb 20%.
On Wednesday, JPMorgan Chase and Goldman Sachs topped estimates on better-than-expected results from Wall Street units. Morgan Stanley is also scheduled to post results Thursday.
This story is developing. Please check back for updates.
