When Bank of America and Morgan Stanley build the revival of Wall Street
Fourth-quarter 2024 profits at Bank of America ( BAC ) and Morgan Stanley ( MS ) more than doubled, bolstering Wall Street’s rally that triggered results at all major U.S. banks and promising 2025 in the Trump era.
Bank of America’s revenue for the quarter was $6.7 billion, a 111 percent increase from $3.1 billion a year ago. The result lifted its full-year profit to $27.1 billion.
Morgan Stanley earned $3.7 billion in revenue in the last quarter of last year, a 145 percent increase. Its full-year profit was $13.4 billion, up 47 percent from 2023.
“We finished 2024 with a strong fourth quarter and we believe this broad momentum positions 2025 well for Bank of America,” said Bank of America CEO Brian Moynihan.
Morgan Stanley CEO Ted Peake called it a “good fourth quarter” that capped “one of the strongest years in the company’s history.”
Both banks signaled the end of a two-year deal drought in 2024 and heightened volatility around the US presidential election.
Bank of America’s investment banking fees increased 44%, and sales and trading income increased 13% to $4.1 billion. Achieved record sales and trading revenues throughout the year. Morgan Stanley’s investment bank revenue rose 25 percent to $1.64 billion.
Strong Wall Street results helped other big banks in the fourth quarter, including JPMorgan Chase ( JPM ), Goldman Sachs ( GS ), Citigroup ( C ) and Wells Fargo ( WFC ).
JPMorgan shouted Additional annual profit In the last quarter of 2024, it generated $14 billion, more than ever before.
Its full-year profit rose to $58 billion, an all-time record for JPMorgan and the largest in U.S. banking history. Fourth-quarter profits were up 50% from the year-earlier period.
In the fourth quarter, Goldman’s revenue rose 105 percent to $4.1 billion, while its full-year profit rose 68 percent to $14.2 billion. Investment banking fees rose 24 percent in the fourth quarter.
Wells Fargo’s investment banking fees rose 59% in the fourth quarter from a year ago, and fourth-quarter revenue rose to $5.08 billion, compared to $3.45 billion a year earlier.
With the GOP taking control of Washington, many bankers hope the negotiations will continue into 2025.
Shares of the biggest U.S. lenders rallied following the election of Donald Trump on hopes that his administration will loosen some rules and apply greater leniency to approve corporate mergers.
The Trump administration is expected to repeal or revise proposed capital rules that could erode future industry profits.