BofA keeps the bank-earnings hit parade rolling
America’s biggest banks continue to churn out billions in profits as the economic expansion continues.
Like JPMorgan, which reported on Wednesday, Bank of America delivered fourth-quarter top- and bottom-line results that bested every analyst’s projection.
“Consumers are still standing,” CFO Alastair Borthwick said, a dynamic of no small import for the bank that has meaningful exposure to lower-income consumers.
Shares of Bank of America initially jumped, but pared that advance and the stock is slightly down in early trading.
Gains may have been pulled forward yesterday, when early reporters propelled the KBW Bank Index up 4.1% in the best day for the group since the aftermath of the US election. However, a fly in the ointment may be that BofA’s nonperforming loans were more elevated than Wall Street expected.
First-quarter guidance is solid, with the bank looking for $14.5 billion to $14.6 billion in net interest income. The midpoint of that range comes in about 9% above the consensus forecast. Management added that the back half of 2025 should see stronger growth than the first six months of the year.
“We believe this broad momentum sets up 2025 very well for Bank of America,” CEO Brian Moynihan said.
