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.
Softening U.S. labor demand, political gridlock and concerns over a potential AI-driven stock bubble rattled investors, prompting them to reshuffle their portfolios, while speculations about the Federal Reserve's rate cuts further boosted trading.
Volatile markets tend to benefit investment banks as their trading desks generate higher revenue from increased client activity.
Bank of America's sales and trading revenue rose 10% to $4.5 billion in the fourth quarter.
The results capped a positive year for the bank. Its shares climbed over 25% 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.
The bank reported a net income of $7.6 billion, or 98 cents per share, in the three months ended December 31, compared with $6.8 billion, or 83 cents per share, in the year earlier.
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