Bank of America (NYSE: BAC) reported a sharp increase in fourth-quarter income as heightened market volatility boosted its trading operations, though shares fell more than 4% intraday on Wednesday.
Like other major Wall Street banks, Bank of America benefited from turbulent financial markets throughout 2025, driven by factors including White House trade policy announcements and investor concerns about a potential bubble in stocks exposed to artificial intelligence.
Sales and trading revenue for the quarter ended December 31 rose 10% year over year to $4.5 billion. Equity trading revenue jumped 23% to $2.0 billion, while fixed income, currencies and commodities revenue increased 2% to $2.5 billion.
Revenue net of interest expense totaled $28.4 billion, up 7% from a year earlier, supported by higher net interest income and a surge in asset management fees. Analysts had expected revenue of $27.78 billion.
Provisions for credit losses were $1.3 billion, down from the prior-year period and unchanged from the previous quarter. Noninterest expenses rose 4% to $17.4 billion, reflecting higher technology investments and increased litigation costs.
Net income for the quarter came in at $7.6 billion, translating to diluted earnings per share of $0.98, compared with Bloomberg consensus estimates of $0.95.
