Bank of America's Profits Surge Amid Dealmaking Resurgence

Bank of America reported higher profits, fueled by a resurgence in dealmaking and increased investor confidence. The bank's investment banking fees rose significantly, signaling a comeback for capital markets. Optimism for a robust 2025 persists, driven by anticipated pro-business policies under the new administration.

Bank of America has reported a significant increase in profits, with numbers riding high on the resurgence of dealmaking activities in the final quarter. The financial giant revealed a net income rise to $6.7 billion, or 82 cents per share, compared to $3.1 billion, or 35 cents per share, a year ago.

This financial uptick reflects a broader improvement in Wall Street's fortunes as mergers and acquisitions rebounded from a previous slump in 2023, pushing capital markets back into high gear. The renewed investor confidence has encouraged companies to increase equity and debt issuances.

Moving forward, bankers express optimism for a robust 2025, spurred on by the incoming President-elect Donald Trump's pledge to instate pro-business policies. Investment banking fees at Bank of America soared by 44% to reach $1.7 billion in the fourth quarter, signaling a positive trend in the financial markets.

(With inputs from agencies.)