(Reuters) – Bank of America is poised to grant stock to most of its global employees for the eighth time since 2017, following a solid performance by the second-largest U.S. lender in 2024, according to an internal report seen by Reuters on Friday.
Stock awards, which will be granted in addition to year-end incentive awards, will be granted to employees who earn up to $500,000 in annual total compensation, covering about 97% of the lender's global workforce.
BofA had 213,193 employees at the end of 2024, which means the stock will be worth just over $1 billion.
Earlier this week, BofA's fourth-quarter earnings beat expectations, boosted by trading activity. The lender also predicted a higher interest yield in 2025.
For the full year 2024, the banking giant's revenue exceeded $100 billion, driven by strong growth in fee income, and its profit reached $27.1 billion.
“Every source of income increased and we experienced better than industry growth in deposits and loans,” BofA CEO Brian Moynihan said in the earnings release. “We believe this broad momentum will set 2025 up very well.”
Wall Street CEOs also expressed confidence that the incoming US administration will maintain a business-friendly environment beneficial to banks. It comes as the country's top lenders report a rise in profits, driven by an increase in business and business activity.
Bankers expect global trade volumes to top $4 trillion in 2025, the highest level in four years.
The broader operating environment was favorable for the banking industry, driven by strong stock markets and analysts' expectations that President-elect Donald Trump will implement an agenda of deregulation and lower taxes.
Earlier this month, Reuters, citing a source, said BofA's bonus pool for investment bankers was likely to rise 10% over the previous year.
The bank's shares rose 30.5% in 2024, outperforming the broader equity markets.
Stock awards are typically granted to reward employees, retain top talent, and align their interests with the long-term success of the company.
