Bank of America reported a resilient Q3 2024, delivering $25.5 billion in revenue and $6.9 billion in net income after tax, translating to $0.81 per share. Management signaled a validated inflection in net interest income (NII), noting a 2% YoY increase in NII and guiding for continued growth into Q4 2024 as deposits build and fixed-rate assets reprice higher. Fees rose 5% YoY and represented about 45% of total revenue, driven by investment banking, brokerage, and advisory activities, with Global Markets and GWIM contributing meaningfully to revenue expansion. The company returned $5.6 billion of capital to shareholders in the quarter ($2.0B in common dividends and $3.5B in share repurchases), underscoring a disciplined capital framework alongside a robust CET1 ratio of 11.8% and TLAC liquidity buffers.
The balance sheet remains very solid: total assets of roughly $3.3 trillion, deposits rising for the fifth straight quarter, and liquidity sources near $947 billion, up $38 billion versus the prior quarter. The bank continues to invest heavily in technology and digital platforms, with approximately 48 million active digital users and 3.6 billion logins in the quarter, and digital sales representing 54% of total consumer sales. Management expects to restore operating leverage in 2025 as NII growth compounds with fee growth and expense discipline. However, the revenue mix faces ongoing challenges from rate-driven NII volatility and competitive deposit dynamics.
Relative to peers, BAC exhibits a diversified mix across Consumer, GWIM, Global Banking, and Global Markets, which provides resilience but also translates into modest near-term margin pressures as rate cuts and balance sheet normalization unfold. The stock trades at ~0.77x price-to-book and ~8.3x price-to-earnings with a roughly 2.2% dividend yield, suggesting a defensive, high-quality franchise trading at a discount to book value and to higher-yielding peers in periods of evolving rate cycles.