Bank of America (BAC)’s fourth-quarter profit more than doubled as the company benefited from a resurgence in trading on Wall Street and as its rivals performed better.
Earnings for the quarter were $6.7 billion, an increase of 111% from $3.1 billion in the year-ago period. As a result, full-year profit increased to $27.1 billion.
“We ended 2024 with a strong fourth quarter,” CEO Brian Moynihan said, “and we believe this broad momentum positions Bank of America for a very positive 2025.” he said.
The bank’s brightest performance came through its Wall Street operations, as trading rebounded across the industry after a two-year drought.
Bank of America’s investment banking fees rose 45%. Meanwhile, the company’s trading division grew by 13.5% from Q3 2023. Customer activity expanded mainly due to changes in the U.S. presidential election, resulting in revenue of $4.1 billion.
Brian Moynihan is Chairman of the Board and Chief Executive Officer (CEO) of Bank of America. Reuters/Brendan McDiarmid · Reuters/Reuters
Wall Street’s strong results provided a fourth-quarter tailwind for other large banks, including JPMorgan Chase (JPM), Goldman Sachs (GS), Citigroup (C), and Wells Fargo (WFC). Ta.
JPMorgan made $14 billion in the final quarter of 2024, producing more annual profits than ever before.
Full-year profits rose to $58 billion, an all-time record for JPMorgan and the highest in U.S. bank history. Profits in the fourth quarter rose 50% from the same period last year.
Goldman’s fourth-quarter profit rose 105% to $4.1 billion, and its full-year profit rose 68% to $14.2 billion. Investment banking fees rose 24% in the fourth quarter.
Wells Fargo’s investment banking fees rose 59% in the fourth quarter from a year earlier, and fourth-quarter profit rose to $5.08 billion from $3.45 billion a year earlier.
Many bankers expect the resurgence in trading to continue into 2025, when Republicans take control of Washington.
Shares of the nation’s largest financial institutions rose after President Donald Trump’s election on hopes that his administration will loosen some rules and be more lenient in approving corporate mergers.
The Trump administration is expected to repeal or amend a series of proposed capital controls that could weigh on future industry profits.
Then, all major bank stocks rose again on Wednesday as earnings season began.
David Hollerith is a senior reporter at Yahoo Finance, covering the crypto space for banking and financial institutions. Follow him on X @DsHollers.
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