Bank of America’s Global Markets business powered through 2025, achieving nearly $21 billion in annual sales and trading revenue, with equities revenue jumping 23% to $2 billion in the fourth quarter on what the bank described as “increased client activity.”
Investment banking fees for the full year were 7% higher than 2024, ranking the bank third globally, while fourth-quarter fees, excluding self-led deals, totaled $1.7 billion, up 1%.
Second-half fees were 25% higher than the first half, reflecting steady deal flow as corporate clients adjusted to “clearer tax and trade policies and ongoing deregulation,” according to CEO Brian Moynihan.
During his remarks on the 4Q 2025 earnings call, Moynihan said: “We delivered on our commitments to shareholders across the year with solid growth across revenue, earnings and returns. We drove operating leverage and continue robust investments in people, brand, technology and both our physical and digital networks.
“Those results reflect the power of our diversified business model and our commitment to drive responsible growth,” he stressed.
Bank of America closed 2025 with net income of $30.5 billion, up 19% year-over-year, and EPS of $3.81. The fourth quarter delivered $7.6 billion in net income, or $0.98 per diluted share, an 18% increase from the same period a year earlier.
Alastair Borthwick, CFO, noted that the fourth quarter was a strong period for market-facing businesses. “The fourth quarter was a strong quarter for us, with 7% year-over-year revenue growth and good operating leverage producing $7.6 billion in net income, or $0.98 in earnings per share. Net interest income of $15.9 billion on a fully taxable equivalent basis was strong and a little better than expected,” he said.
He highlighted continued momentum in market-based fees: “$10.4 billion came from sales and trading, investment banking, and asset management fees, and those are three of the more highly compensable market-facing areas. These areas grew revenue 10% year-over-year in the aggregate.”
Expense discipline also supported the trading and markets business. “Most of the year-over-year expense growth was a result of revenue-related growth in markets and wealth-based activities, and our continued investments in the franchise,” Borthwick said.
“We saw productivity improvements through AI and digitalization more generally, and those enabled us to add client-facing associates as we eliminated work and roles in our operational support areas. This year, we brought another 2,000 college graduates into the company, and we remain an employer of choice with progressive benefit programs for our employees,” he added.
On the operational side, net charge-offs declined for the second consecutive quarter, driven by stabilization in credit cards and lower commercial real estate losses, which Borthwick said contributed to efficiency in markets-related businesses.
The bank also reduced its average diluted share count by about 300 million shares, or 4%, compared to fourth-quarter 2024, providing additional flexibility for capital deployment in market-facing areas.
Looking ahead, Moynihan expressed optimism for 2026, noting on the call: “We are bullish on the U.S. economy in 2026. The regulatory environment and tax and trade policies coming into sharper focus give us confidence as we continue to support our clients and drive disciplined growth.”
