- Net income doubles in fourth quarter
- Loan book growth highest in the sector
Bank of America (US:BAC) enjoyed a strong end to the year as clients prepared for a change of administration. The giant lender saw its net income double in the fourth quarter to $6.66bn (£5.5bn). Admittedly, this was flattered by one-off regulatory costs in the fourth quarter of 2023 not repeating themselves, but when adjusted for that impact, the underlying 14 per cent increase in net earnings was a respectable end to 2024.
Importantly, Bank of America’s results prove that it can generate a substantial return for its shareholders, with returns on tangible common equity a healthy 12 per cent for the year. A good portion of this was down to the bank having the ability to flex its loan book, with total loans for the year increasing by $42bn as consumers continued to spend on mortgages and Bank of America’s own-brand credit cards. This represents more than double the loan growth at its nearest rival, JPMorgan (US:JPM), and makes Bank of America the most successful lender currently in the US.