Catenaa, Wednesday, January 14, 2026- US Banking giants Bank of America and Wells Fargo’s stock fell by 5% on Wednesday after reporting pretty much expected profits for the fourth quarter.
For the quarter, Bank of America’s net income came in at $7.6 billion, a 12% rise from a year ago and ahead of forecasts for $7.4 billion. Wells Fargo’s net income rose 6% to $5.4 billion, in line with forecasts.
Both banking giants reported their highest full-year net income in four years.
Bank of America’s earnings per share came in at $0.98, ahead of forecasts, while Wells Fargo reported earnings per share of $1.62, shy of forecasts for $1.67. Wells Fargo’s results included a $0.14 impact related to severance costs in the quarter.
Wells Fargo stock fell nearly 5.1% after Wednesday’s open, while Bank of America stock tumbled 4.8%.
Revenue growth at BofA and Wells Fargo was driven by higher lending margins and fees compared to the year-ago quarter. Bank of America’s firm-wide revenue rose 7% to $28 billion, while Wells Fargo posted a 4% increase in revenue to $21.3 billion.
Bank of America’s fourth-quarter dealmaking revenue rose 1% from the year-ago quarter to $1.67 billion, while trading fees within the firm rose 10% to $4.5 billion, driven by equities.
Over the same period, Wells Fargo’s investment banking revenue fell 1% to $716 million. Its trading operations reported an 8% increase to $1.6 billion in fees over the fourth quarter.
“While any number of risks continue, we are bullish on the US economy in 2026,” Bank of America CEO Brian Moynihan said in a statement.
With the loosening of an onerous growth restriction last summer, Wells Fargo CEO Charles Scharf said, “We are excited to now compete on a level playing field and are able to dedicate even more resources to growth with the ability to grow our balance sheet.”.
