Bank of America surpassed quarterly forecasts, supported by a surge in equities trading and robust net interest income that lifted bottom-line performance.
The bank reported earnings of 98 cents per share for the fourth quarter of 2025, ahead of the 96 cents estimated by analysts polled by LSEG. Revenue totaled $28.53 billion, also topping the $27.94 billion consensus forecast.
Net income for the quarter advanced 12% year-on-year to $7.6 billion. Revenue climbed by 7.1%, buoyed by net interest income, trading revenues, as well as higher asset management fees.
Equity trading revenues were a bright spot, increasing 23% to $2.02 billion. This result outpaced analyst expectations, which had projected approximately $1.9 billion for the division within the quarter, according to the company statement on Wednesday.
Net interest income was up 9.7% to $15.8 billion in the final quarter, with the bank projecting a further 7% increase in this metric for the first quarter of 2026 on a fully taxable equivalent basis. For the full year 2026, Bank of America projects net interest income growth between 5% and 7%.
In addition, investment banking fees rose modestly by 0.7%, while fees from mergers and acquisitions gained 6.1% and revenue from debt issuance climbed 5.9%.
