Bank of America (BofA) exceeded expectations in its Q4 2024 earnings, driving shares up 2% in premarket trading. The bank reported earnings per share (EPS) of 82 cents, outperforming the 77-cent consensus estimate.
Total revenue, net of interest expenses, reached $25.3 billion, slightly ahead of the projected $25.13 billion. Net interest income (NII) stood at $14.36 billion, surpassing analysts’ forecasts of $14.12 billion. On a fully taxable equivalent (FTE) basis, NII reached $14.51 billion, topping the $14.34 billion projection.
Key performance metrics also outshined expectations. The return on average equity hit 9.37%, above the forecasted 8.75%, while the return on average assets was 0.8%, exceeding the 0.74% estimate. Additionally, the return on average tangible common equity reached 12.6%, beating the 11.9% forecast.
BofA’s CEO Brian Moynihan highlighted the bank's strong finish to 2024, noting growth in deposits and loans alongside increases in all revenue sources. He emphasized the bank's robust capital and liquidity position, which enabled $21 billion in shareholder returns during the year. Moynihan expressed confidence in the bank's momentum heading into 2025.
With better-than-expected results and strong financial metrics, Bank of America continues to demonstrate its resilience and growth potential, cementing its position as a key player in the financial sector.