Bank of America: Full Year 2024 Earnings In Line With Expectations

Bank of America (BAC) reported its full-year 2024 earnings, with results largely in line with analyst expectations. The bank's revenue and net income grew year-over-year, driven by strong performances in its investment banking and wealth management divisions. Here's a breakdown of the key figures and trends:



Revenue and Net Income Growth

* Revenue: $102.5 billion, up 12% year-over-year
* Net Income: $26.8 billion, up 15% year-over-year
* Earnings per share (EPS): $3.25, up 5% year-over-year

Investment Banking and Wealth Management

* Investment banking fees surged 44% to $1.65 billion, driven by a strong end to the year in dealmaking.
* Wealth management fees increased 18% to $5.2 billion, reflecting the bank's growing client base and assets under management.



Net Interest Income and Margin

* Net interest income (NII) rose 3% to $58.2 billion, driven by higher interest rates and loan growth.
* Net interest margin (NIM) decreased slightly to 1.95% from 2.08% in 2023, reflecting the impact of higher funding costs and the changing interest rate environment.

Non-Performing Loans (NPLs)

* The NPL ratio increased slightly to 0.61% from 0.54% in 2023, indicating a small rise in defaulted loans.
* However, the impact of NPLs on Bank of America's financial performance was relatively minor, with the bank's profit margin remaining stable at 27%.

In summary, Bank of America's full-year 2024 earnings were in line with analyst expectations, driven by strong performances in its investment banking and wealth management divisions. The bank's revenue and net income grew year-over-year, while its net interest income and margin remained stable. Although the NPL ratio increased slightly, it had a minimal impact on the bank's overall financial performance. As Bank of America continues to navigate the changing interest rate environment and economic conditions, investors will be watching for further updates on the bank's performance and strategic initiatives.