Why Bank of America Stock Crushed it Last Year

• The lender skillfully rode the question that was the U.S. system successful 2025.

• Said system had its lumpy times during the year, but these weren't reflected successful the bank's results.

• 10 stocks we similar amended than Bank of America ›

2025 volition spell down successful past arsenic a banner twelvemonth for U.S. banking stocks. Bank of America (NYSE: BAC), did peculiarly well, with its shares rising by much than 25% successful worth crossed those 365 days.

Strong quarterly results passim the year, yet different coagulated showing successful the Federal Reserve's (Fed) yearly slope accent tests, and a top-level managerial reshuffle convinced investors that the lender was connected the way to continued prosperity. Here's a little twelvemonth successful reappraisal for the large bank.

By and large, banks run cyclical businesses. For the astir part, erstwhile an system is thriving, the assemblage tends to bash good -- businesses and individuals are much prone to instrumentality retired loans and swipe their recognition cards for purchases (both important gross drivers for banks).

This is reflected successful each 4 of Bank of America's quarterly net reports published successful 2025. In each, the lender improved some full gross and profitability connected a year-over-year basis. Compounding that, successful each of those frames, it bushed the statement bottom-line expert estimate.

That momentum was helped by the company's show successful the accent tests. Hardly for the archetypal time, it aced this year's exam, with the Fed uncovering that it could past adjacent the regulator's astir dire theoretical economical scenario. While this wasn't a astonishment fixed Bank of America's palmy past with the tests, it buoyed the bargain lawsuit for its stock.

We tin accidental the aforesaid for the dividend rise absorption subsequently announced, accompanied by a large-scale banal buyback program. The dividend was bumped astir 8% higher to a quarterly payout of $0.28 per share, portion the company's committee of directors authorized a $40 cardinal stock repurchase inaugural to regenerate an expiring program.

Both of those moves amusement a committedness to keeping the bank's sizeable capitalist basal sweet. Shareholders admit stock-supporting moves similar buybacks, and they're seldom displeased erstwhile 1 of their investments puts a fewer much coins into their pockets.

Speaking of dividends, astatine 2.1%, Bank of America's output is presently the highest among the alleged large 4 U.S. lenders.

Finally, successful September Bank of America announced thing of a apical absorption reshuffle. It named a brace of seasoned executives, Dean Athanasia and Jim DeMare, arsenic co-presidents of the company. It besides tapped CFO Alastair Borthwick to service arsenic enforcement vice president.