Financial institution of America on Wednesday posted fourth-quarter earnings that topped analysts’ expectations on positive factors from web curiosity earnings and equities buying and selling.
Here is what the corporate reported:
- Earnings: 98 cents per share vs. 96 cents anticipated, in response to LSEG
- Income: $28.53 billion vs. $27.94 billion anticipated
The corporate stated revenue rose 12% from a yr earlier to $7.6 billion, or 98 cents per share. Income climbed 7.1% to $28.53 billion, because of rising web curiosity earnings, asset administration charges and buying and selling income.
Shares of the financial institution fell greater than 3% in early buying and selling.
“With shoppers and companies proving resilient, in addition to the regulatory surroundings and tax and commerce insurance policies coming into sharper focus, we anticipate additional financial progress within the yr forward,” CEO Brian Moynihan stated within the launch. “Whereas any variety of dangers proceed, we’re bullish on the U.S. financial system in 2026.”
Internet curiosity earnings, which is the distinction in what a financial institution earns on loans and securities and what it pays depositors for his or her financial savings, rose 9.7% to $15.92 billion within the quarter. That’s roughly $240 million greater than what analysts had anticipated, per StreetAccount.
The financial institution additionally gave new steerage on web curiosity earnings, saying that it might develop 5% to 7% in 2026.
Equities buying and selling income rose 23% to $2.02 billion, or about $160 million greater than anticipated. Mounted earnings buying and selling income edged up by 1.5% to $2.52 billion, or about $120 million under what analysts had forecast for the quarter.
Charges generated by the agency’s funding bankers have been roughly flat from a yr in the past at $1.67 billion, practically matching the StreetAccount estimate.
The lender obtained a lift from a smaller-than-expected provision for mortgage losses within the quarter of $1.31 billion, about $190 million decrease than analysts had forecast.
Financial institution of America, the second-largest U.S. financial institution by property after JPMorgan Chase, has been a beneficiary of the trade’s latest tail winds. Falling rates of interest, rising Wall Avenue buying and selling and advisory charges, steady client credit score, and deregulation have all helped the lender, whose shares rose 25% final yr.
Analysts will wish to hear extra from Moynihan as as to whether momentum will carry into 2026.
On Tuesday, JPMorgan posted outcomes that exceeded expectations on better-than-expected buying and selling income. Citigroup and Wells Fargo additionally report outcomes Wednesday, whereas Goldman Sachs and Morgan Stanley will launch outcomes Thursday.
This story is growing. Please verify again for updates.
Correction: Financial institution of America’s shares rose 25% final yr. An earlier model misstated the proportion.
