Bank of America (BAC) Q4 2024 earnings summary

Executive summary

• Reported Q4 2024 net income of $6.7 billion ($0.82 EPS), up 112% year-over-year, capping a year of strong profitability and organic growth across all business lines.

• Full-year 2024 net income reached $27.1 billion ($3.21 EPS) on revenue of $102 billion, with solid earnings, a strong balance sheet, and broad-based growth.

• Average deposits for 2024 were $1.97 trillion, up 2% year-over-year, with robust liquidity and CET1 ratio of 11.9%.

• Returned $21 billion to shareholders in 2024, a 75% increase over 2023, including an 8% dividend hike.

• Return on average common equity was 9.5% for 2024 and 9.4% for Q4; tangible common equity return was 12.9% for 2024.

Financial highlights

• Q4 2024 revenue was $25.5 billion (FTE), up 15% year-over-year; adjusted for one-time items, revenue grew 8%.

• Net interest income for Q4 2024 was $14.5 billion (FTE), up 3% year-over-year, with growth expected to accelerate in 2025.

• Noninterest expense for Q4 2024 was $16.8 billion, down 5% year-over-year, mainly due to the absence of the 4Q23 FDIC special assessment.

• Provision for credit losses in Q4 2024 was $1.5 billion; net charge-offs were $1.5 billion, with a net charge-off ratio of 0.54%.

• Book value per share rose 7% year-over-year to $35.79; tangible book value per share up 9% to $26.58.

Outlook and guidance

• Net interest income expected to grow 6%-7% in 2025, with Q4 2025 NII projected at $15.5-$15.7 billion (FTE).

• Expense guidance for 2025 is 2%-3% higher than 2024, with Q1 expected at $17.6 billion due to seasonal payroll taxes.

• Net charge-off ratio expected to remain stable at 50-60 bps in 2025, assuming steady GDP and employment.

• Tax rate for 2025 expected in the 11%-13% range.

• Management anticipates broad momentum and a solid economic environment to support further growth.