Bank of America profit climbs as trading surges in volatile markets

A Bank of America branch office is shown in New York. (AP / Mark Lennihan, file)

Bank of America’s profit rose, as its traders brought in more revenue from spurred client activity in the fourth quarter due to increased volatility in the markets.

Shares of the bank were up about two per cent in trading before the bell.

Softening U.S. labor demand, political gridlock and concerns over a potential AI-driven stock bubble rattled the stock markets, prompting investors to reshuffle their portfolios, while speculations about the Federal Reserve’s rate cuts further boosted trading.

Bank of America’s sales and trading revenue rose 10 per cent to US$4.5 billion in the fourth quarter, in line with CEO Brian Moynihan’s forecast last month.

“With consumers and businesses proving resilient, as well as the regulatory environment and tax and trade policies coming into sharper focus, we expect further economic growth in the year ahead,” Moynihan said in a statement.

“While any number of risks continue, we are bullish on the U.S. economy in 2026.”

The results capped a positive year for the bank. Its shares climbed over 25 per cent in 2025, beating the broader S&P 500 index, but lagging rivals JPMorgan Chase and Wells Fargo.

JPMorgan reported a fourth-quarter profit on Tuesday that beat Wall Street estimates, helped by a stronger performance by its traders.

Volatile markets tend to benefit investment banks as their trading desks generate higher revenue from increased client activity.

Bank of America reported a net income of $7.6 billion, or 98 cents per share, in the three months ended Dec. 31, compared with $6.8 billion, or 83 cents per share, in the year earlier.

(Reporting by Pritam Biswas in Bengaluru and Saeed Azhar in New York; Editing by Lananh Nguyen and Shinjini Ganguli)