Bank of America (BAC) beat fourth-quarter earnings expectations, helped by strong trading in volatile markets and record interest income. Shares were up around 2% in premarket trading.
Net income came to $7.6 billion, or 98 cents per share, up from $6.8 billion, or 83 cents a year earlier. Analysts were expecting 96 cents per share.
Trading Revenue
Trading revenue rose 10% to $4.5 billion, roughly in line with CEO Brian Moynihan’s forecast. Markets were choppy in Q4 soft labor demand, political gridlock, and worries about an AI-driven stock bubble kept investors active. That boosted trading desks.
Moynihan said the economy remains resilient. “Consumers and businesses continue to hold up. We expect more growth next year, even with risks,” he said.
Interest Income and NII
Net interest income (NII) rose 9.7% to $15.75 billion. Loans and leases were up 8% to $1.17 trillion. Rate cuts last year helped reduce deposit costs, which lifted earnings.
Bank of America expects NII to rise 7% in Q1 and reaffirmed its full-year 2026 NII growth forecast of 5% – 7%.
2025 Performance
Shares climbed over 25% in 2025, beating the S&P 500, but still lagged JPMorgan and Wells Fargo. Like BAC, JPMorgan’s trading desks benefited from volatile markets, boosting its quarterly profit.
