Bank of America closes 2024 with profits of $25.5 billion, a 2.6% rise, and total revenue of $101.9 billion. Explore the financial highlights.
Bank of America has concluded the fiscal year 2024 with a remarkable net profit of $25,503 million, reflecting a modest yet noteworthy increase of 2.6% compared to the previous year. The total revenue for the second-largest banking institution in the United States reached an impressive $101.887 billion, marking a 3.3% rise from 2023, despite a slight decline in net interest income, which fell by 1.5% to $56,060 million.
In a rather intriguing twist, the bank’s provisions for credit default risk surged by 32%, amounting to $5,821 million, with $1,452 million allocated in the fourth quarter alone. This uptick in provisions could be interpreted as a prudent measure in light of the ever-evolving economic landscape, where uncertainties loom large.
Moreover, Bank of America’s capital buffer, as indicated by its Common Equity Tier 1 (CET1) ratio, stood at a robust 11.9%, a tenth of a percentage point higher than both the preceding quarter and the same quarter in 2023. This stability in capital adequacy is commendable, especially in a climate where financial institutions are navigating through turbulent waters.
When examining the bank’s lending activities, it is noteworthy that outstanding loans reached a staggering $1.08 trillion, reflecting a year-on-year growth of 3%. This portfolio comprises approximately $620 billion extended to corporate entities, while around $461 billion was allocated to individual borrowers.
In the final quarter of the year, Bank of America reported a net attributable profit of $6,399 million, an astonishing 125% increase, with net income for this period totaling $25,347 million, which is 15.4% higher than the same timeframe in 2023. The bank’s net interest income also saw a commendable increase of 3% during this quarter, culminating in a total of $14,359 million.
Bank of America’s financial performance in 2024 illustrates a blend of resilience and strategic foresight, positioning itself favorably amidst the complexities of the current economic environment.
