Bank of America Corp (NYSE:BAC) reported fourth-quarter fiscal 2025 financial results on Wednesday.
The bank reported a net income of $7.6 billion (down from $6.80 billion a year ago) and EPS of 98 cents, beating the analyst consensus estimate of 96 cents.
Revenue, net of interest expense, increased 7% year-over-year (Y/Y) to $28.532 billion, beating the analyst consensus estimate of $27.944 billion.
The bank said debit and credit card spending climbed 6% to $255 billion during the period. The credit card balances more than 90 days past due declined to 1.27% from 1.35% a year earlier, the Wall Street Journal reported on Wednesday.
Segments
The Consumer Banking segment reported a net income of $3.30 billion, compared to $2.82 billion year-over-year. Global Wealth and Investment Management generated $1.41 billion, up from $1.17 billion year-over-year.
Global Banking achieved $2.09 billion, compared to $2.14 billion year-over-year. Global Markets recorded $997 million, up from $953 million year-over-year.
Net interest income was $15.9 billion (up 10% Y/Y), driven by higher NII related to Global Markets activity, fixed-rate asset repricing, and higher deposit and loan balances, partially offset by the impact of lower interest rates.
Noninterest income was $12.6 billion (+4% Y/Y). Provision for credit losses declined from $1.5 billion to $1.3 billion a year ago. The Investment Banking fees rose 1% to $1.7 billion.
Balance Sheet
The efficiency ratio for the quarter was 61.11%, compared to 63.04% Y/Y. The bank reported a Common Equity Tier 1 (CET1) ratio of 11.4%, compared to 11.9% a year ago. The book value per share of $38.44 improved by 8%.
The average loan and lease balance was $1.17 trillion (+8% Y/Y). Average deposits are up 3% Y/Y to $2.01 trillion, marking the tenth consecutive quarter of sequential growth.
The tangible book value per share of common stock was $28.73, up from $26.37 in the last year.
It paid $2.1 billion in dividends and repurchased $6.3 billion of stock.
Brian Moynihan said Bank of America closed the year with strong fourth-quarter results, delivering more than $30 billion in net income and growing earnings per share by 19% from 2024.
He said the bank improved returns for both the quarter and the full year by generating solid revenue growth, achieving positive operating leverage, and lowering its efficiency ratio.
Moynihan said resilient consumers and businesses, along with greater clarity around regulation, taxes, and trade policy, support expectations for continued economic growth.
While acknowledging ongoing risks, he said the bank remains optimistic about the U.S. economy in 2026.
Outlook
In 2026, Bank of America expects a net interest income growth of 5%-7% Y/Y. It expects a first-quarter net interest income growth of ~7% Y/Y.
BAC Price Action: Bank of America shares were down 1.54% at $53.70 during premarket trading on Wednesday, according to Benzinga Pro data.
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