Thursday, February 13, 2025
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Investment banking better than expected, Bank of America tops in interest income estimates


Bank of America Results posted on Thursday were better than expected with better-than-expected profit on investment banking and interest income and revenue that topped expectations.

Here’s what the company said:

  • Earning: According to LSEG, 82 cents vs. 77 cents expected
  • Income: $25.5 billion vs. $25.19 billion expected

The company said fourth-quarter profit doubled from a year earlier to $6.67 billion, or 82 cents a share, when the bank faced a $2.1 billion Federal Deposit Insurance Corp. assessment of 2023 regional bank failures and A fee of $1.6 billion was attached. Linked to accounting on interest rate swaps.

Revenue rose 15% to $25.5 billion due to rising fees and strong trading results from investment banking and asset management.

Investment banking fees rose 44% to $1.65 billion, about $180 million more than analysts expected. This suggests the company’s bankers had a strong end to the year, as just last month CEO Brian Moynihan told investors that investment banking fees would increase 25% in the quarter.

Unlike rivals including Goldman SachsBank of America’s trading operations during the quarter did not exceed expectations. Fixed income revenue rose 13% to $2.48 billion, broadly in line with StreetAccount estimates, while equity revenue rose 6% to $1.64 billion, essentially matching expectations.

But the firm said net interest income, one of the most watched figures for the lender, rose 3% to $14.5 billion, about $170 million more than expected.

Perhaps more than other megabanks, the firm’s fortunes depend on rates and their impact on net interest income. Investors will be keen to hear about the company’s targets for 2025, especially as expectations for a rate cut have been reined in.

on wednesday, JPMorgan Chase And Goldman topped Wall Street units’ estimates of better-than-expected results. Morgan Stanley is also scheduled to post results on Thursday.

Correction: Bank of America’s fourth-quarter profit more than doubled to $6.67 billion. This move was misstated in an earlier version. The company’s equity revenue increased to $1.64 billion. This figure was misstated in an earlier version.

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