Brian Moynihan, CEO of Bank of America, talking on CNBC’s Squawk Box on the WEF Annual Meeting in Davos, Switzerland on Jan. sixteenth, 2024.
Adam Galici | CNBC
Bank of America on Thursday posted outcomes that topped expectations for revenue and income on better-than-expected funding banking and curiosity revenue.
Here’s what the corporate reported:
- Earnings: 82 cents vs. anticipated 77 cents LSEG estimate
- Revenue: $25.5 billion vs. anticipated $25.19 billion
The firm mentioned revenue jumped 47% to $6.67 billion, or 82 cents per share, from a yr earlier, when the financial institution had a $2.1 billion FDIC evaluation tied to the 2023 regional financial institution failures and a $1.6 billion cost tied to rate of interest swaps.
Revenue jumped 15% to $25.5 billion on rising charges from funding banking and asset administration and stronger buying and selling outcomes.
Investment banking charges surged 44% to $1.65 billion, roughly $180 million greater than analysts had anticipated. That signifies the corporate had a powerful finish to the yr, as simply final month, CEO Brian Moynihan advised buyers that funding banking charges would soar 25% within the quarter.
Unlike with rivals together with Goldman Sachs, Bank of America’s buying and selling operations did not considerably exceed expectations within the quarter. Fixed revenue income rose 13% to $2.48 billion, roughly consistent with the StreetAccount estimate, whereas equities income rose 6% to $1.64, additionally basically matching expectations.
But the agency mentioned that web curiosity revenue rose 3% to $14.5 billion, exceeding estimates by about $170 million.
Perhaps greater than different megabanks, the agency’s fortunes appear to hinge on charges and their influence on web curiosity revenue.
Last month, CEO Brian Moynihan advised buyers that his agency would hit steerage for NII of about $14.3 billion.
Investors will likely be eager to listen to in regards to the firm’s goal for 2025, particularly as expectations for price cuts have been reined in.
On Wednesday, JPMorgan Chase and Goldman topped estimates on better-than-expected outcomes from Wall Street items. Morgan Stanley can be scheduled to put up outcomes Thursday.
This story is creating. Please verify again for updates.
