Bank of America (BAC.US) has rewarded its global employees with $1 billion in stock, reflecting the strong performance of the U.S. banking sector.
1min read Recently, major US banks have reported strong financial results and expressed confidence in the future development environment for the banking industry. Media reports cited an internal memo seen on Friday that the second-largest US bank, Bank of America (BAC.US), will award its global majority of employees with stock for the eighth time since 2017, due to its strong performance in 2024.
The stock awards will be in addition to the year-end incentive awards and will be given to employees whose total annual compensation is less than $500,000, covering about 97% of the bank's global workforce. As of the end of 2024, Bank of America had 213,193 employees, meaning the total stock award will be slightly over $1 billion.
Earlier this week, Bank of America released its fourth-quarter and full-year 2024 earnings report, with profits boosted by trading activity. The bank also predicted higher interest income in 2025. The banking giant's full-year revenue in 2024 exceeded $100 billion, with profits reaching $27.1 billion, driven by strong fee income.
The largest US banks reported significant growth in profits, mainly driven by increased trading and trading activity. Morgan Stanley's fourth-quarter revenue grew 10%, with net profits up about 50% year-on-year to $14 billion. Full-year net profits were $58.5 billion, up 18% from the record $49.6 billion set by the US banking industry in 2023. Wells Fargo's fourth-quarter net profits grew 47%, with its investment banking business growing 59%.
Looking ahead, Wall Street CEOs also expressed confidence, with bankers expecting global trading volumes to exceed $4 trillion in 2025, the highest in four years, and believing that the incoming US government will maintain a business-friendly environment favorable to banks. The overall operating environment may be favorable to the banking industry, driven by strong stock markets and analyst expectations that Donald Trump, the elected president, will implement a deregulation and tax-cut agenda.
Brian Moynihan, CEO of Bank of America, said at the earnings conference: "All sources of income have increased, and we saw deposit and loan growth better than industry growth." "We believe this broad momentum sets a good foundation for 2025."
Earlier this month, media reports cited sources as saying that the bonus pool for Bank of America investment bankers could grow 10% from last year. The bank's stock price soared 30.5% in 2024, outperforming benchmarks such as the S&P 500. Stock awards are typically given to reward employees, retain top talent, and align their interests with the company's long-term success.
