Bank of America, Wells Fargo, Citi stocks slide as earnings add to rough start to 2026

Core Insights - Bank of America and Wells Fargo reported increased profits for the fourth quarter and full year, with Bank of America achieving a net income of $7.6 billion (up 12%) and Wells Fargo at $5.4 billion (up 6%) [1][2] - Both banks recorded their highest full-year net income in four years, indicating strong financial performance [1] Financial Performance - Bank of America's earnings per share (EPS) was $0.98, exceeding forecasts, while Wells Fargo's EPS was $1.62, slightly below the expected $1.67 [2] - Citigroup reported a decline in profits, with a net income of $2.5 billion (down 13%) and an EPS of $1.19, missing analyst expectations [3] Revenue Growth - Bank of America experienced a 7% increase in firm-wide revenue to $28 billion, while Wells Fargo's revenue rose 4% to $21.3 billion, driven by higher lending margins and fees [4] - Bank of America's dealmaking revenue increased by 1% to $1.67 billion, and trading fees rose 10% to $4.5 billion, primarily from equities [4] Investment Banking Performance - Citigroup's investment banking revenue surged 35% to $1.29 billion, while Wells Fargo's investment banking revenue fell 1% to $716 million, although its trading operations saw an 8% increase in fees to $1.6 billion [5] CEO Perspectives - The CEOs of Bank of America and Wells Fargo expressed optimism about the US economy and their institutions' growth prospects, with Bank of America setting new growth and return targets [6] - Bank of America CEO Brian Moynihan highlighted a bullish outlook for the US economy by 2026 [7]