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Bank of America (NYSE:BAC) just dropped a powerhouse earnings report, closing out 2024 with a $6.7 billion net income and $0.82 EPSa near double from last year. Revenue surged 15% YoY to $25.3 billion, fueled by booming investment banking fees and solid consumer banking performance. CEO Brian Moynihan didn't hold back, pointing to strong loan and deposit growth as key drivers heading into 2025. The bank also rewarded shareholders handsomely, returning $21 billion in capital through dividends and buybacks.
The biggest story? Investment banking fees exploded 44% to $1.7 billion, pushing Bank of America up the ranks to #3 in the industry, thanks to a surge in deal activity. The Global Wealth and Investment Management division wasn't far behind, raking in $6 billion in revenuea 15% jump, driven by higher asset management fees. Meanwhile, sales and trading had another stellar quarter, with Fixed Income, Currencies, and Commodities (FICC) revenue up 19%, proving that BofA is firing on all cylinders.
With $1.96 trillion in deposits (+3%) and a CET1 capital ratio of 11.9%, the bank's balance sheet is rock solid. Digital banking adoption is surging too, with 61% of all sales happening online. CFO Alastair Borthwick is already calling for more net interest income expansion in 2025, setting the stage for further gains. Bottom line? Bank of America is stacking wins, returning cash to investors, and locking in long-term growth.
This article first appeared on GuruFocus.