BofA Exceeds Expectations with Strong Trading Performance and Increased Lending Income

Bank of America Reports Robust Fourth Quarter Performance

Bank of America experienced a notable boost in its trading division during the last quarter, capitalizing on market fluctuations and surpassing expectations for net interest income.

According to a statement released Wednesday, revenue from equity trading climbed by 23% to reach $2.02 billion in the fourth quarter, outpacing analysts’ forecasts of approximately $1.9 billion. This strong performance contributed to earnings of 98 cents per share, exceeding Wall Street predictions.

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CEO Brian Moynihan commented, “With both consumers and businesses demonstrating resilience, and as regulatory, tax, and trade policies become clearer, we anticipate continued economic expansion in the coming year. While various risks remain, our outlook for the US economy in 2026 is optimistic.”

Since President Donald Trump introduced tariffs on global trading partners last year, markets have experienced significant volatility. This turbulence has benefited Bank of America and other major Wall Street firms, as increased client activity has led investors to adjust their portfolios.

The bank, which is the second largest in the US, also reported that net interest income—a crucial revenue stream—rose by 9.7% to $15.8 billion, surpassing analyst expectations of a 7.8% increase. Net interest income represents the difference between what the bank earns from loans and what it pays to depositors.

Market Highlights

Bank of America’s recent results provide further insight into how leading US banks performed during the first year of President Trump’s renewed term. Investors are also keen to hear from executives whose companies serve a broad spectrum of American consumers and businesses, seeking updates on the national economic outlook.

JPMorgan Chase & Co. also reported better-than-expected earnings on Tuesday, with trading activity driving results despite a surprise drop in investment banking fees. Executives anticipate a rebound in deal activity in 2026, supported by a strong pipeline and corporate clients returning to the market after previous delays.

At Bank of America, revenue from investment banking increased by 0.7%, exceeding analyst projections amid a resurgence in dealmaking. Advisory fees for mergers and acquisitions rose by 6.1%, and debt issuance revenue grew by 5.9%. However, revenue from equity issuance fell by 18%.

Bank of America Stock Performance

Shares of Bank of America, headquartered in Charlotte, North Carolina, were up 1.2% in early New York trading at 7:02 a.m. Over the past year through Tuesday, the stock gained 19%, outpacing the 12% rise in the S&P 500 Financials Index.

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Source: Bloomberg L.P., 2026