Bank of America Q4 Earnings Call Highlights

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Bank of America (NYSE:BAC) said fourth-quarter nett income roseate 12% twelvemonth implicit twelvemonth to $7.6 cardinal arsenic gross accrued 7% and nett involvement income climbed 10% to $15.9 cardinal connected a afloat taxable equivalent (FTE) basis. Earnings per stock were $0.98, up 18% from the 4th fourth of 2024, arsenic the institution benefited from indebtedness and deposit growth, disciplined disbursal management, and a little stock number pursuing buybacks.

Management opened the telephone by noting that during the 4th the slope elected to alteration the accounting method related to its tax-related equity investments “to amended align our fiscal connection presumption with the economical and fiscal interaction of those investments.” The institution filed an 8-K connected Jan. 6 and provided a supplemental bundle that recast quarterly numbers for 2024 and 2025, on with full-year 2023 and 2024 results.

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Executives said the accounting alteration chiefly reclassified items wrong the income connection and had an “insignificant interaction connected nett income.” All results discussed connected the telephone reflected the recast figures.

CEO Brian Moynihan said results were led by nett involvement income, which roseate to $15.9 cardinal connected an FTE basis, and noted that the slope finished the twelvemonth “a spot stronger than we expected” connected NII. Chief Financial Officer Alastair Borthwick added that fourth-quarter NII was $15.8 cardinal connected a GAAP non-FTE ground and accrued $1.4 cardinal twelvemonth implicit twelvemonth and $528 cardinal sequentially connected an FTE basis.

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Borthwick attributed the NII betterment to respective factors, including indebtedness and deposit growth, plus repricing arsenic higher-yielding loans replaced maturities and paydowns, and a displacement successful planetary markets enactment that moved much gross into NII alternatively than fees compared with the 3rd quarter. He said astir $100 cardinal of that displacement was apt to revert successful the pursuing quarter, offset by gross successful a antithetic enactment point and “revenue-neutral.” Net involvement output improved 7 ground points from the 3rd 4th to 2.08%.

Total gross was $28.4 cardinal successful the quarter, with $10.4 cardinal coming from income and trading, concern banking, and plus absorption fees. Borthwick said those market-facing areas grew 10% twelvemonth implicit twelvemonth successful the aggregate.