Bank of America, or BofA, is a major U.S. financial company based in Charlotte, North Carolina. It was formed in 1998 when BankAmerica merged with NationsBank. It’s the second-largest bank in the U.S. and offers services like commercial banking, wealth management, and investment banking. Bank of America employs around 213,000 people and serves about 69 million customers in the U.S. and over 35 other countries.
Bank of America focuses on responsible growth and improving financial lives. The company aims for excellent service, client satisfaction, and sustainable growth. It has around 3,700 financial centers and 15,000 ATMs in the U.S., along with top-notch digital banking services. Globally, Bank of America is also a key player in asset management, trading, and risk management.
Bank of America Fiscal Q4 2024
Bank of America (BAC) Q4 2024 earnings report showed strong performance. The company reported a net income of $6.7 billion, up from $3.1 billion a year earlier. Revenue increased by 15% year-over-year to $25.35 billion.
Also, Earnings per share (EPS) were $0.82, beating expectations. Net interest was higher than the expected and investment banking fees grew by 44%.
Full-year 2024 net income reached $27.1 billion, with revenue surpassing $100 billion. The bank maintained strong capital and liquidity, returning $21 billion to shareholders in 2024.
Earnings highlights:
- Net income of $6.7 billion ($0.82 per diluted share), up from $3.1 billion last year.
- Revenue, net of interest expense, was $25.3 billion (up 15%). Adjusted revenue was up 8%, driven by higher asset management and investment banking fees, and sales and trading revenue.
- Net interest income (NII) of $14.4 billion, up 3%.
- Noninterest expense decreased by 5% to $16.8 billion.
- Average deposit balances increased by 3% to $1.96 trillion.
- Average loans and leases grew by 3% to $1.08 trillion.
- Returned $5.5 billion to shareholders, including $2 billion through dividends and $3.5 billion in share repurchases.
- Record client balances of $4.3T, up 12% YoY.
- AUM flows of $79B, up 52% YoY.
2025 Outlook
Bank of America expects net interest income to grow sequentially throughout 2025, with projections of $15.5 billion to $15.7 billion in the fourth quarter of 2025.
Board Statements
CEO Brian Moynihan said: We finished 2024 on a high note. All our revenue sources grew, and we outpaced industry growth in deposits and loans. We also maintained strong capital and liquidity, allowing us to return $21 billion to shareholders in 2024. This positive momentum sets up Bank of America for a great 2025.
Chief Financial Officer Alastair Borthwick‘s statement: The team did well in 2024, earning strong fee income. We expect to keep growing our net interest income next year. In the fourth quarter, we improved our operating leverage. Our assets are in good shape, and client spending is growing steadily, indicating a healthy economy. As we move into 2025, we’re focused on delivering value to our shareholders, supporting our clients’ growth, and increasing our market share.
Impact on the Market
After the company reported a 15% increase in revenue and earnings per share of $0.82 exceeded expectations. As a result, BAC shares rose in premarket trading
Investors were encouraged by the strong performance and optimistic outlook for 2025, which included projected growth in net interest income and investment banking fees.
