Bank of America Q4 profit jumps 18% as interest income and trading surge

Bank of America reported Wednesday stronger-than-expected fourth-quarter results, posting net income of $7.6 billion and earnings of $0.98 per share, up 18% year on year, as record interest income and a surge in trading revenue capped a solid performance in 2025.

Revenue rose 7% to $28.4 billion, in the three months ending December 31, while net interest income climbed 10% to $15.8 billion, reflecting higher loan balances, asset repricing and resilient consumer and corporate activity.

Earnings surge

For the full year, the bank earned $30.5 billion, with earnings per share rising 19% to $3.81, marking its 15th consecutive quarter of year-on-year growth. Bank of America said its balance sheet remained strong, with average deposits of $2.01 trillion, up 3%, and average loans and leases increasing 8% to $1.17 trillion, supported by growth across all business segments.

Consumer Banking remained the largest contributor, generating $3.3 billion in net income on revenue of $11.2 billion, up 5%. Card spending rose 6% to $255 billion, while the bank added about 680,000 net new consumer checking accounts in 2025, extending its streak to 28 consecutive quarters of growth. Consumer investment assets climbed 16% to $599 billion, buoyed by higher market valuations and client inflows.

Global Wealth and Investment Management posted net income of $1.4 billion, with revenue rising 10% to $6.6 billion as asset management fees jumped 13%. Client balances reached $4.8 trillion, up 12%, reflecting strong markets and positive net flows. Global Banking delivered $2.1 billion in net income, supported by higher treasury service charges and average deposits of $656 billion, up 13%.

Trading strength

In Global Markets, net income totaled $1.0 billion, as sales and trading revenue increased 10% to $4.5 billion, with equities trading particularly strong, rising 23% year on year amid volatile markets.

Chief executive Brian Moynihan said the results reflected resilient consumers and businesses, improved operating leverage and disciplined expense management, adding that the bank is “bullish on the U.S. economy in 2026.” Chief financial officer Alastair Borthwick said Bank of America expects net interest income to continue rising and forecast mid-single-digit loan growth next year.

Despite beating estimates, Bank of America shares slipped in early trading, as investors digested results following a strong run in bank stocks. Analysts said volatility-driven trading gains and steady consumer health underscore the sector’s momentum heading into 2026.

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Nathaniel Alexander Abaño

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