Bank of America (NYSE: BAC) reported a strong performance in the fourth quarter of 2024, with net income reaching $6.7 billion, or $0.82 per diluted share, a significant increase from $3.1 billion, or $0.35 per diluted share, in the same period last year.
The total revenue for the quarter was $25.3 billion, marking a 15% increase compared to the previous year. Higher asset management, investment banking fees, and a sales and trading revenue boost primarily drove this growth. The net interest income stood at $14.4 billion, reflecting a 3% rise from both the prior quarter and the year-ago period.
Bank of America Beats Expectations in Q4
The Consumer Banking segment reported a net income of $2.8 billion, with revenue at $10.6 billion, up 3% from the previous year. This increase was largely due to net interest income and card income. The segment also saw a decrease in provision for credit losses by 11%, with net charge-offs rising by $223 million, driven by credit card activity. Noninterest expenses rose by 8%, attributed to investments in personnel, technology, and operations.
Global Wealth and Investment Management (GWIM) achieved a net income of $1.2 billion, with revenue increasing by 15% to $6.0 billion, reflecting a 23% rise in asset management fees. The segment’s client balances grew by 12% to $4.3 trillion, driven by higher market valuations and positive net client flows. The Global Banking division reported a net income of $2.1 billion, with revenue up by 3% to $6.1 billion, primarily due to increased investment banking fees.
The fourth quarter results surpassed market expectations, with Bank of America delivering an earnings per share (EPS) of $0.82, higher than the predicted $0.7738. The company’s revenue of $25.3 billion also exceeded the anticipated $25.1 billion. This outperformance was largely driven by robust growth in asset management and investment banking fees, alongside a notable increase in sales and trading revenue.
In the Consumer Banking segment, the revenue increase of 3% was in line with expectations, supported by steady growth in net interest income and card income. Despite a slight decrease in average deposits by 2% from the previous year, the segment showed resilience with a 5% increase in combined credit and debit card spending. The segment also reported a significant 22% rise in consumer investment assets, reflecting strong market conditions and client activity.
Global Wealth and Investment Management outperformed expectations with a 15% rise in revenue, driven by a 23% increase in asset management fees. This was supported by a 12% growth in client balances, indicating strong market valuations and positive client flows. The Global Banking division also exceeded expectations, with a 3% increase in revenue attributed to higher investment banking fees, offset by a slight decline in net interest income.
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BAC Optimistic About its Performance in 2025
Looking ahead, Bank of America remains optimistic about its performance in 2025. The company’s Chair and CEO, Brian Moynihan, expressed confidence in the bank’s ability to maintain its growth trajectory, citing strong revenue sources and better-than-industry growth in deposits and loans. The bank’s solid capital and liquidity position, along with its ability to return $21 billion of capital to shareholders in 2024, further supports this positive outlook.
Chief Financial Officer Alastair Borthwick highlighted the bank’s strong fee income generation throughout 2024 and expressed confidence in continuing to grow net interest income in the coming year. The bank’s focus on maintaining healthy asset quality and supporting client growth remains a priority, with an emphasis on driving market share and delivering value to shareholders.
Bank of America’s strategic initiatives for 2025 include enhancing digital capabilities, investing in technology and operations, and expanding client relationships across its business segments. The bank aims to leverage its strong market position and capitalize on favorable economic conditions to sustain its growth momentum and achieve its financial targets.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
