BofA Tops Estimates as Trading Beats and Lending Revenue Rises

(Bloomberg) -- Bank of America Corp.’s equity traders posted their champion 4th fourth ever arsenic the institution reaped the benefits of volatile markets and nett involvement income topped analysts’ estimates.

Revenue from equity trading roseate 23% to $2.02 cardinal successful the last 3 months of the year, according to a connection Wednesday. Analysts had been expecting equity-markets gross of adjacent to $1.9 billion. That helped springiness Bank of America net of 98 cents a share, topping analysts’ estimates. Still, shares declined amid concerns astir expenses.

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“With consumers and businesses proving resilient, arsenic good arsenic the regulatory situation and taxation and commercialized policies coming into sharper focus, we expect further economical maturation successful the twelvemonth ahead,” Chief Executive Officer Brian Moynihan said successful the statement. “While immoderate fig of risks continue, we are bullish connected the US system successful 2026.”

Volatility has whipsawed markets since US President Donald Trump announced tariffs connected trading partners astir the satellite past year. That’s been bully quality for the markets businesses astatine Bank of America and its rivals crossed Wall Street arsenic they’ve benefited from a surge successful lawsuit enactment arsenic investors reposition their holdings.

The second-largest US slope besides said that nett involvement income, a cardinal root of gross for the company, roseate 9.7% to $15.8 billion. Analysts had expected a 7.8% summation for NII, the gross collected from indebtedness payments minus what depositors are paid.

Bank of America said successful a presumption accompanying the results that it expects NII to emergence 7% for 2026’s archetypal 4th connected a afloat taxable equivalent basis. For the afloat year, NII is apt to turn 5% to 7%, the institution said.

That guidance suggests that first-quarter “expenses volition beryllium worse than we and the marketplace expect,” Piper Sandler Cos. expert Scott Siefers said successful a enactment to clients. “Better-than-consensus NII expectations are good, but the outgo usher could offset and support expectations much tethered.”

Shares of Charlotte, North Carolina-based Bank of America slipped 3.2% astatine 9:38 a.m. successful New York. They’ve gained 15% successful the past 12 months, much than the 12% summation successful the S&P 500 Financials Index.

Bank of America’s top-line gross came successful astatine $28.4 billion, 1 of the highest quarters connected grounds and topping the expert statement of $27.8 billion. The summation came arsenic the institution kept a lid connected expenses, which roseate 3.9% to $17.4 billion, conscionable shy of analysts’ estimates.