Bank of America (BAC) shares moved higher after the bank posted quarterly results that topped Wall Street forecasts. The stock closed at $50.09 and rose 4.5% to $52.34 in premarket trading (at the time of writing), marking a strong reaction to its latest earnings report. Year-to-date, shares are up 16%, reflecting steady momentum across the financial sector.
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The bank reported earnings per share of $1.06, ahead of the $0.95 analysts had expected. Revenue came in at $28.24 billion, above the $27.5 billion estimate. Profit rose 23% from a year earlier to $8.5 billion, helped by growth in investment banking and trading. Revenue was also up 10.8% from the same period last year, supported by both corporate and consumer activity.
Trading and Investment Banking Strength
Bank of America said its investment banking fees jumped 43% from a year ago to $2 billion. That was roughly $380 million above market forecasts. Equities trading added to the gains, with revenue up 14% to $2.3 billion. Fixed income trading increased 5% to $3.1 billion, meeting expectations. Similar to other large banks such as JPMorgan Chase (JPM) and Goldman Sachs (GS), activity in dealmaking and capital markets helped lift results.
At the same time, the bank’s net interest income reached $14.8 billion, which was 7% higher than a year earlier. Deposit growth continued for an eighth straight quarter, showing steady customer confidence. Bank of America also noted that nearly 80% of its consumer households are now fully digital, reflecting its push into technology and automation.
Balancing Growth and Costs
However, the bank continues to face some cost pressure. Total expenses were reported at $17.2 billion, with increases tied to regulation and compliance. Commercial real estate remained a soft spot due to higher charge-offs in that segment. Still, the company’s overall revenue growth and solid balance sheet helped offset those challenges.
In addition, Bank of America returned $7.3 billion to shareholders last quarter through buybacks and dividends, marking a 40% increase from the first half of last year. Its return on tangible common equity stood at 13.4%, reflecting strong profitability.
Overall, the quarter showed balanced growth across business lines and steady improvement in client activity. With higher investment banking revenue and continued digital engagement, Bank of America entered the final months of the year with stable earnings momentum.
Is BAC a Buy, Hold, or Sell?
On the Street, Bank of America boasts a Strong Buy consensus, based on 18 analysts’ ratings. The average BAC stock price target stands at $56.15, implying a 12.10% upside from the current price.
