Key Highlights:
- Investment Banking and Trading Boost: Bank of America is projected to benefit from increased activity in investment banking and trading during Q4 2024.
- CEO Insights: CEO Brian Moynihan affirmed the firm would meet its net interest income (NII) guidance of approximately $14.3 billion.
- Focus on 2025 Targets: Investors are particularly interested in hearing about the company’s 2025 guidance amid shifting expectations on rate cuts.
Wall Street Expectations for Q4 2024:
- Earnings per Share (EPS): 77 cents, according to LSEG.
- Total Revenue: $25.19 billion, as forecasted by LSEG.
- Net Interest Income (NII): $14.33 billion (FTE basis), as reported by StreetAccount.
- Trading Revenue:
- Fixed Income: $2.41 billion.
- Equities: $1.68 billion.
Impact of Interest Rate Expectations
Like its competitors, Bank of America is expected to see growth in Q4 investment banking and trading activity. However, the bank’s performance remains closely tied to interest rate fluctuations and their effect on net interest income (NII).
Last month, CEO Brian Moynihan confirmed the bank would achieve its NII target of $14.3 billion. This achievement is significant as rate cut expectations for 2025 have been adjusted.
Growth Projections by Business Segment:
- Investment Banking Fees: Expected to rise by 25% during the quarter.
- Wealth Management Revenue: Anticipated to grow by 20%, showing strong performance in client services.
Rival Banks Outperform Expectations
On Wednesday, JPMorgan Chase and Goldman Sachs surpassed estimates, driven by strong performance in their Wall Street units. Morgan Stanley is also set to release its results today.
Stay updated as Bank of America’s Q4 earnings reveal how it compares to its competitors and how it plans to navigate 2025’s economic landscape.
