Bank of America (NYSE:BAC) reported stronger-than-expected fourth-quarter earnings, supported by a sharp pickup in trading activity as market volatility boosted results at the second-largest U.S. bank.
As with several Wall Street rivals, BofA benefited from turbulent market conditions through 2025, driven by factors such as shifting White House trade policies and investor concerns over a potential bubble in artificial intelligence-linked stocks.
Sales and trading revenue for the three months to December 31 rose 10% year on year to $4.5 billion. Equity trading was a standout, with revenue jumping 23% to $2.0 billion, while fixed income, currencies and commodities trading edged 2% higher to $2.5 billion.
Total revenue, net of interest expense, increased 7% to $28.4 billion, helped by higher net interest income and a surge in asset management fees. That figure came in above Wall Street expectations of $27.78 billion.
Provisions for credit losses amounted to $1.3 billion, down from the same period in 2024 and unchanged from the previous quarter. At the same time, noninterest expenses rose 4% to $17.4 billion, reflecting increased technology investment and higher litigation costs.
Net income for the quarter reached $7.6 billion, translating into diluted earnings per share of $0.98. That compared with a Bloomberg consensus estimate of $0.95.
Chief executive Brian Moynihan said in a statement that the consumer and business backdrop has remained “resilient.” He added that as banking regulation and U.S. tax and trade policy are “coming into sharper focus,” the group expects continued economic growth this year.
“While any number of risks continue, we are bullish on the U.S. economy in 2026,” Moynihan said.
Shares in Bank of America were trading higher in U.S. premarket activity on Wednesday.