Brian Moynihan, CEO of Bank of America, speaking on CNBC’s Squawk Box at the WEF Annual Meeting in Davos, Switzerland on Jan. 16th, 2024.
Adam Galici | CNBC
Bank of America reported fourth-quarter earnings before the opening bell Thursday.
Here’s what the company reported compared with what Wall Street analysts surveyed by LSEG were expecting:
- Earnings: 82 cents vs. expected 77 cents
- Revenue: $25.5 billion vs. expected $25.19 billion
How will shifting expectations on interest rates impact Bank of America?
Like rivals, the firm is expected to benefit from a boost in investment banking and trading activity in the fourth quarter.
But perhaps more than other megabanks, the firm’s fortunes seem to hinge on rates and their impact on net interest income.
Last month, CEO Brian Moynihan told investors that his firm would hit guidance for NII of about $14.3 billion.
Investors will be keen to hear about the company’s target for 2025, especially as expectations for rate cuts have been reined in.
Moynihan said that investment banking fees could jump 25% in the quarter, while wealth management revenue may climb 20%.
On Wednesday, JPMorgan Chase and Goldman Sachs topped estimates on better-than-expected results from Wall Street units. Morgan Stanley is also scheduled to post results Thursday.
This story is developing. Please check back for updates.
