Bank of America Corp (BAC.N) reported a better-than-expected 30% jump in quarterly profit on Wednesday, driven by loan growth and record-breaking M&A volumes in its investment banking business.
Flush with cash and emboldened by soaring stock market valuations, large buyout funds, corporates and financiers struck billions of dollars worth of deals in the fourth quarter, generating record advisory fees of $850 million for BofA, up 55% from a year earlier.
Loans grew during the quarter across every category except home equity, with average loans and leases, excluding those from the government’s Paycheck Protection Program, up 3.4% from the prior quarter and 3.2% from a year ago, the bank said.
That compared with a 6% rise in average loans at JPMorgan Chase & Co (JPM.N). In contrast, Wells Fargo & Co reported a 3% drop, although it noted positive trends to the upside in the final six weeks of 2021.
