US banks continue to deliver historic results for 2024: Bank of America delivers resilient performance with $27bn Net Income for the Full-Year

ByInvestment Club

Overview

Bank of America reported its Q4 2024 financial results, showcasing significant improvements in revenue and profitability compared to Q4 2023 and Q3 2024. The bank’s robust performance was driven by record growth in key segments such as Global Markets and Consumer Banking, along with continued digital innovation.

Bank of America closed 2024 with solid financial performance, reporting $101.9bn in revenue and a net income of $27.1bn, translating to earnings per share (EPS) of $3.21. The bank maintained a strong balance sheet with $1.97tn in deposits (+2% YoY) and a CET1 ratio of 11.9%, well above regulatory requirements. Robust liquidity with $953bn in global liquidity sources (GLS) and healthy returns, including a 9.5% return on average equity (ROE) and 12.9% return on tangible common equity (ROTCE), highlight Bank of America’s financial resilience and ability to deliver sustainable growth for 2025 too.

Revenue Growth

  • Total revenue, net of interest expense, reached $25.3bn (+15% YoY), fueled by higher noninterest income and sales and trading revenues.
  • Sales and trading revenue reached a record $4.1bn (+13% YoY), with FICC (Fixed Income, Currencies, and Commodities) revenue up 19% YoY.

Profitability

  • Net income more than doubled to $6.7bn (+112% YoY), driven by strong operational performance and the absence of one-time expenses from Q4 2023.
  • Diluted EPS surged to $0.82 (+134% YoY).

Consumer Banking

  • Record consumer investment assets of $518bn (+22% YoY), driven by higher market valuations and net client flows.
  • Added ~1.1m net new checking accounts in 2024, achieving 24 consecutive quarters of growth.

Global Wealth & Investment Management

  • Client balances reached a record $4.3tn (+12% YoY), supported by $22bn in asset management flows during Q4 2024.

Loan Growth

  • Average loans and leases grew by $30bn to a record of $1.08tn (+3% vs. 2023), driven by consumer and small business lending.

Brian Moynihan, CEO of Bank of America, wanted to mention these remarkable performances of his team, being certain that 2025 promises to be another good year: “For both the fourth quarter and for the year, we enjoyed good profitability. We drove healthy returns. We saw good organic client activity across all the businesses. We continue to manage the risk well and increase the capital delivered back to our shareholders. And we positioned ourselves well for growth in 2025. I want to again thank my team for continuing to drive another year of Responsible Growth”.

Author: Ionuț-Adrian Lazar

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