Bank of America, Wells Fargo report profit surge as trading activity powers results

Banking giants Bank of America (BAC) and Wells Fargo (WFC) some reported Wednesday greeting that their 4th fourth and full-year profits roseate from a twelvemonth ago.

For the quarter, Bank of America's nett income came successful astatine $7.6 billion, a 12% emergence from a twelvemonth agone and up of forecasts for $7.4 billion. Wells Fargo's nett income roseate 6% to $5.4 billion, in-line with forecasts.

Both banking giants reported their highest full-year nett income successful 4 years.

Bank of America's net per stock came successful astatine $0.98, up of forecasts, portion Wells Fargo reported net per stock of $1.62 was shy of forecasts for $1.67. Wells Fargo's results included a $0.14 interaction related to severance costs successful the quarter.

Bank of America banal roseate astir 1% up of Wednesday's open; Wells Fargo shares fell astir 1%.

Revenue astatine some firms was driven by higher lending revenues and fees from the year-ago quarter. Bank of America's firme-wide gross roseate 7% to $28 cardinal portion Wells Fargo posted a 4% summation successful gross to $21.3 billion.

Bank of America’s 4th fourth dealmaking gross roseate 1% from the year-ago 4th to $1.67 billion, portion trading fees wrong the firm’s income and trading concern roseate 10% to $4.5 billion, driven by equities.

Over the aforesaid period, Wells Fargo’s concern banking gross fell 1%. Its markets division, which houses trading operations, reported an 8% summation to $1.6 cardinal successful trading fees implicit the 4th quarter.

The CEOs of the nation's second- and fourth-largest banks, respectively, some shared optimistic views connected the way up for the US system and their ain institutions.

"While immoderate fig of risks continue, we are bullish connected the U.S. system successful 2026," Bank of America CEO Brian Moynihan said successful a statement.

With the loosening of an onerous maturation regularisation past summer, Wells Fargo CEO Charles Scharf said, "We are excited to present vie connected a level playing tract and are capable to dedicate adjacent much resources to maturation with the quality to turn our equilibrium sheet."

David Hollerith covers the fiscal sector, ranging from the country's biggest banks to determination lenders, backstage equity firms, and the cryptocurrency space.

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