Investment banking and interest income exceed expectations at Bank of America.

• On Thursday, Bank of America reported earnings that exceeded expectations for profit and revenue, thanks to strong performance in investment banking and interest income.
• The company reported a 47% increase in fourth-quarter profit to $6.67 billion, or 82 cents per share, compared to the previous year.
• The firm's net interest income appears to be heavily influenced by interest rates, more so than other megabanks.

On Thursday, the company posted better-than-expected results for profit and revenue, driven by strong investment banking and interest income.

Here's what the company reported:

• Earnings: 82 cents vs. 77 cents expected, according to LSEG
• Revenue: $25.5 billion vs. $25.19 billion expected

The bank's fourth-quarter profit increased by 47% to $6.67 billion, or 82 cents per share, compared to the previous year, when the bank faced a $2.1 billion FDIC assessment related to the 2023 regional bank failures and a $1.6 billion charge related to accounting on interest rate swaps.

The revenue increased by 15% to $25.5 billion due to higher fees from investment banking and asset management, as well as improved trading outcomes.

Investment banking fees increased by 44% to $1.65 billion, exceeding analysts' expectations by $180 million. This suggests that the company's bankers had a successful quarter, as CEO Brian Moynihan had previously predicted a 25% increase in investment banking fees.

While rivals exceeded expectations, Bank of America's trading operations did not. Fixed income revenue increased by 13% to $2.48 billion, which was in line with the StreetAccount estimate, and equities revenue rose by 6% to $1.64 billion, also meeting expectations.

The lender's net interest income increased by 3% to $14.5 billion, surpassing expectations by approximately $170 million.

The company's financial performance appears to be heavily dependent on interest rates and their effect on net income. Investors will be eager to learn about the company's 2025 revenue forecast, particularly given the recent curbing of rate cut expectations.

Wall Street units of Goldman exceeded expectations on Wednesday, while Morgan Stanley is set to release results on Thursday.

This story is developing. Please check back for updates.