Bank of America Wednesday job Fourth-quarter earnings that beat analysts’ expectations for net interest and stock trading income.
Here’s what the company reported:
Winnings: 98 cents per share versus 96 cents expected, according to LSEG Income: $28.53 billion versus $27.94 billion expectedThe company said earnings rose 12% from a year earlier to $7.6 billion, or 98 cents per share. Revenue climbed 7.1% to $28.53 billion, driven by higher net interest income, asset management fees and trading revenue.
The bank’s shares fell more than 1% in premarket trading.
“With consumer and business resilience, as well as increased attention to the regulatory environment and tax and trade policies, we expect further economic growth in the year ahead,” CEO Brian Moynihan said in the release. “Even though many risks remain, we are optimistic about the U.S. economy in 2026.”
Net interest income, which represents the difference between what a bank earns on its loans and securities and what it pays to depositors for their savings, rose 9.7% to $15.92 billion in the quarter. That’s about $240 million more than analysts expected, according to StreetAccount.
Equity trading revenue rose 23% to $2.02 billion, about $160 million more than expected. Fixed-income trading revenue edged up 1.5% to $2.52 billion, about $120 million less than analysts had forecast for the quarter.
Fees generated by the company’s investment bankers were roughly flat from last year at $1.67 billion, nearly matching StreetAccount’s estimate.
The lender benefited from a lower-than-expected provision for loan losses in the quarter of $1.31 billion, about $190 million less than analysts expected.
Bank of America, the second largest American bank in terms of assets after JPMorgan Chasehas benefited from recent industry tailwinds. Falling interest rates, rising Wall Street trading and advisory fees, stable consumer credit and deregulation have all helped the lender, whose shares are up 25% last year.
Analysts will want to hear more from Moynihan on whether the momentum will continue into 2026.
On Tuesday, JPMorgan reported better-than-expected results thanks to better-than-expected trading revenue. Citi Group And Wells Fargo also report results on Wednesday, while Goldman Sachs And Morgan Stanley will publish the results on Thursday.
This story is developing. Please check again for updates.
Correction: Bank of America shares are up 25% in the last year. An earlier version incorrectly stated the percentage.
