Bank of America: Q4 Earnings Snapshot

Bank of America (BAC) is set to report its fourth-quarter 2024 earnings before the opening bell on Thursday, January 16. Analysts expect the nation's second-largest bank to post higher revenue and profits compared to the same period last year. The bank has surpassed Wall Street's bottom-line estimates in the last four quarters, and its shares have gained more than 37% over the past 12 months.



Bank of America's strong performance in 2024 was driven by growth in its wealth management and investment banking divisions. In the first quarter, the wealth management division grew, contributing to the company's overall earnings. This growth was likely driven by increased client assets and higher fee income. The investment banking division also performed well, with underwriting income and sales and trading revenues increasing by 24.5% and 11.7%, respectively, in the third quarter of 2024. This growth was likely due to increased market activity and a higher volume of deals, leading to more fees generated by the division.



Bank of America is expected to report net interest income of $14.18 billion for the final quarter of 2024, with revenue projected to come in at $24.95 billion. Net income is projected to come in at $6.28 billion, nearly doubling from the year before. The bank's CET1 (Common Equity Tier 1) ratio stood at 11.1% at the end of the quarter, down 20 basis points from the previous quarter. Despite the slight decrease, the ratio remained well above the regulatory minimum requirement, demonstrating the bank's solid capital position.



Analysts like the bank's stock, with 11 of the 12 analysts tracked by Visible Alpha giving it a "buy" or equivalent rating, with just one "hold" rating. Their average price target of about $52 suggests a nearly 16% premium from the stock's closing price on Monday. Bank of America's strong performance in 2024, driven by growth in its wealth management and investment banking divisions, positions the bank well for continued success in 2025. As the bank reports its fourth-quarter earnings, investors will be watching closely to see if it can maintain its momentum and continue to beat expectations.