Bank of America CEO Brian Moynihan speaks on CNBC’s Squawk Box during the WEF Annual Meeting in Davos, Switzerland on January 16, 2024.
Adam Garisi | CNBC
Bank of America on Thursday reported earnings and revenue that beat expectations, with investment banking and interest income beating expectations.
Here’s what the company reported:
Earnings: 82 cents (77 cents expected) LSEG expected earnings: $25.5 billion ($25.19 billion expected)
The company said profit rose 47% from a year earlier to $6.67 billion, or 82 cents per share. At the time, the bank had booked a $2.1 billion FDIC assessment related to the 2023 local bank failure and a $1.6 billion charge related to interest rate swaps.
Revenue rose 15% to $25.5 billion due to higher fees in investment banking and asset management and strong trading results.
Perhaps more than other megabanks, its fortunes seem to depend on interest rates and their impact on net interest income.
Last month, CEO Brian Moynihan told investors that the company’s NII outlook was about $14.3 billion.
Investors will want to know about the company’s 2025 targets, especially since expectations for rate cuts have been subdued.
Moynihan said investment banking fees could rise 25% this quarter, while wealth management income could rise 20%.
On Wednesday, JPMorgan Chase & Co. and Goldman Sachs beat expectations for results that beat Wall Street expectations. Morgan Stanley is also scheduled to report earnings on Thursday.
This story is developing. Please check back for the latest information.
