Categories: Stock Market News

Financial institution of America awards inventory to staff after robust 2024 efficiency, memo reveals


(Reuters) – Financial institution of America is ready to award inventory to most of its international staff for the eighth time since 2017, following a strong efficiency by the second-largest U.S. lender in 2024, in keeping with an inner memo seen by Reuters on Friday.

The inventory awards, which might be issued along with year-end incentive awards, could be granted to staff incomes an annual complete compensation of as much as $500,000, overlaying about 97% of the lender’s international workforce.

BofA had 213,193 employees on the finish of 2024, which implies the inventory awards will quantity to barely over $1 billion.

Earlier this week, BofA’s fourth-quarter revenue beat expectations, boosted by buying and selling exercise. The lender additionally predicted it might earn greater curiosity earnings for 2025.

For the complete 12 months of 2024, the banking large’s income surpassed $100 billion, pushed by robust development in payment earnings, and its revenue got here in at $27.1 billion.

“Each income elevated, and we noticed higher than trade development in deposits and loans,” BofA CEO Brian Moynihan stated in an earnings launch. “We consider this broad momentum units up 2025 very properly.”

Wall Avenue CEOs additionally voiced confidence that the incoming U.S. administration would preserve a business-friendly atmosphere useful to banks. This comes because the nation’s prime lenders report a surge in earnings, pushed by an uptick in dealmaking and buying and selling actions.

Bankers count on international deal volumes to surpass $4 trillion in 2025, the best degree in 4 years.

The broader working atmosphere has been favorable for the banking trade, propelled by robust fairness markets and analysts’ expectations that President-elect Donald Trump will implement a deregulatory and lower-tax agenda.

Earlier this month, Reuters reported, citing a supply, that BofA’s bonus pool for funding bankers will in all probability rise 10% for the earlier 12 months.

The financial institution’s inventory surged 30.5% in 2024, outperforming the broader fairness markets.

Inventory awards are sometimes issued to reward staff, retain prime expertise, and align their pursuits with the corporate’s long-term success.

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