In the third quarter of 2024, Bank of America (BAC) reported a net income of $6.9 billion.
During the third quarter of 2024, Bank of America (NYSE: BAC) reported a net income of $6.9 billion, or $0.81 per diluted share, which is a decrease from the previous year’s figure of $7.8 billion, or $0.90 per diluted share. The bank’s total revenue, excluding interest expense, was $25.3 billion, a modest increase from $25.2 billion in the previous year.
This expansion was primarily due to an increase in sales and trading revenue, as well as higher asset management and investment banking fees, despite a decrease in net interest income. The Consumer Banking segment reported a net income of $2.7 billion, with revenue decreasing by 1% to $10.4 billion. This decline was attributed to a decrease in net interest income, which was partially mitigated by an increase in card income.
The segment experienced a 4% decrease in average deposits from the previous year, but the combined credit and debit card expenditure increased by 3%, reaching $232 billion.
Furthermore, consumer investment assets reached a record high of $497 billion, a 28% increase from the previous year. Net income for Global Wealth and Investment Management was $1.1 billion, and revenue increased by 8% to $5.8 billion.
Higher market levels and robust asset under management (AUM) flows were the primary factors driving this development, which was facilitated by a 14% increase in asset management fees. Client balances increased by 18% from the previous year to a record $4.2 trillion, due to positive net client flows and higher market valuations.
In the third quarter, Bank of America’s earnings per share (EPS) of $0.81 surpassed the anticipated $0.76, superseding market expectations. The bank’s revenue of $25.3 billion also marginally exceeded the forecast of $25.25 billion. This favorable result was primarily attributable to the substantial increase in fees in asset management and investment banking, which offset the decrease in net interest income.
Revenue in the Global Banking segment decreased by 6% to $5.8 billion, predominantly as a result of decreased net interest income. In spite of this, the segment maintained its status as the third-ranked investment bank in terms of fees, achieving an 18% increase in total investment banking fees. Average deposits in this segment increased by 9%, indicating robust client engagement and expansion of the bank’s deposit base.
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