Bank of America Corporation (NYSE:BAC) Surpasses Earnings and Revenue Expectations

Core Viewpoint - Bank of America reported strong earnings for the fourth quarter of 2025, exceeding expectations in both EPS and revenue, driven by robust net interest income and equity trading performance [2][3][6] Financial Performance - The bank's EPS for the fourth quarter was $0.98, surpassing the estimated $0.95 [2][6] - Revenue reached approximately $28.37 billion, exceeding the forecast of $27.76 billion [2][6] - Profit for the fourth quarter increased by 12% year-over-year, totaling $7.6 billion [3] - Equity trading revenue surged by 23%, amounting to $2.02 billion [3] Annual Performance - For the full year of 2025, Bank of America's profits rose to $30.5 billion, up from $27 billion in 2024 [4] - Per-share earnings increased by 19% to $3.81 for the full year [4] Market Valuation and Financial Health - The P/E ratio is approximately 13.15, and the price-to-sales ratio is about 2.02 [5] - The enterprise value to sales ratio stands at 4.46, while the enterprise value to operating cash flow ratio is around 13.71 [5] - The earnings yield is about 7.60%, and the debt-to-equity ratio is approximately 2.33 [5] - The current ratio is around 0.41, indicating potential challenges in covering short-term liabilities [5] CEO's Outlook - CEO Brian Moynihan expressed confidence in the US economy, highlighting resilient consumers and businesses, along with favorable regulatory and policy environments [4]