Bank of America profit climbs as trading surges in volatile markets

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 US labour 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 per cent to US$4.5 billion in the fourth quarter.

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.

SEE ALSO

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

The bank reported a net income of US$7.6 billion, or 98 US cents per share, in the three months ended December 31, compared with US$6.8 billion, or 83 US cents per share, in the year earlier. REUTERS

Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.