BofA Tops Estimates as Trading Beats and Lending Revenue Rises

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BofA Tops Estimates as Trading Beats and Lending Revenue Rises.

companies :: 17hrs ago :: source - bloomberg

By Katherine Doherty

(Bloomberg) -- Bank of America Corp.’s traders posted a strong fourth quarter as the company reaped the benefits of volatile markets and net interest income topped analysts’ estimates.

Revenue from equity trading rose 23% to $2.02 billion in the final three months of the year, according to a statement Wednesday. Analysts had been expecting equity-markets revenue of close to $1.9 billion. That helped give Bank of America earnings of 98 cents a share, topping analysts’ estimates.

WATCH: Bank of America Corp. saw revenue from equity trading rise 23% to $2.02 billion and net interest income topped analysts’ estimates as traders posted a strong fourth quarter. Dani Burger reports. Source: Bloomberg

Bank of America’s results offer a further look at how the biggest US banks fared during the first year of Trump’s return to office. Investors are also eager to hear details on the national economy from executives whose firms cater to large swaths of American consumers and businesses.

On Tuesday, JPMorgan Chase & Co. reported earnings that beat analysts’ estimates, with trading activity boosting results, despite an unexpected decline in investment-banking fees. Executives expect deals to pick up in 2026, with a strong pipeline and corporate clients who pushed off activity coming back to the market.

At Bank of America, investment-banking revenue rose 0.7%, better than analysts expected amid renewed strength in dealmaking. Fees for advising on mergers and acquisitions rose 6.1%, and revenue from debt issuance increased 5.9%. That came amid an 18% slump in revenue from equity issuance.

Shares of Charlotte, North Carolina-based Bank of America, rose 1.2% at 7:02 a.m. in early New York trading. They’d gained 19% in the 12 months through Tuesday, more than the 12% increase in the S&P 500 Financials Index.