Why did BAC's EPS exceed forecasts in 2024?

Bank of America's (BAC) EPS of $3.21 for 2024 exceeded forecasts due to several key factors:

1. **Strong Investment Banking Activity**: Investment banking fees surged by 44% to $1.7 billion, which significantly contributed to the revenue growth. This increase reflects heightened activity in deal-making and market conditions favorable to investment banking operations.
2. **Higher Interest Income**: Net interest income (NII) grew by 3% to $14.5 billion, surpassing expectations. This growth was driven by global markets activity, fixed-rate asset repricing, and loan growth. The bank's ability to generate NII despite rising deposit costs is a testament to its strong market positioning and customer relationships.
3. **Sales and Trading Revenue Growth**: Sales and trading revenue increased by 15% year-over-year to $25.35 billion, exceeding expectations. This growth was fueled by strong performance across various revenue streams, including fixed income, currencies, and commodities (FICC) and equities trading.
4. **Strategic Initiatives**: Bank of America's focus on digital banking and its robust wealth management and asset management divisions contributed to the revenue growth. The bank reported that 61% of all sales happened online, indicating a successful transition to digital channels.

In summary, Bank of America's EPS exceeded forecasts due to robust investment banking activity, higher interest income, sales and trading revenue growth, and strategic initiatives. These factors collectively contributed to the bank's strong financial performance in 2024.