Bank of America reported a 4.2% year-over-year increase in total loans and leases in the fourth quarter, with commercial and industrial balances leading the way. Commercial lending rose by 5.1%, reflecting strong demand from mid-market and large corporate clients, while real estate lending expanded 3.8% on the back of robust activity in the office and industrial sectors. Consumer loans held steady, inching up 1.0% as credit card outstandings grew 2.4% but residential mortgages declined 0.5%. Net interest income increased 6.8% to $13.4 billion, driven by higher yields on the commercial book, though loan-loss provisions remained elevated at $1.1 billion to cover potential credit stresses.

The bank’s common equity tier 1 ratio stood at 11.8%, comfortably above regulatory requirements, while return on equity reached 13.2% for the quarter. Efficiency metrics improved, with the cost-to-income ratio narrowing to 58.3%, supported by disciplined expense management and technology-enabled process automation. Non-interest income grew 4.5%, benefiting from a 7.2% increase in wealth management fees and a 3.1% uptick in trading revenue. Credit quality held up, with the net charge-off rate at 0.32%, marginally below the prior-year period.

Bank of America increased its quarterly dividend by 8% year-over-year, marking the fifth consecutive annual hike and reflecting confidence in cash flow generation. The board authorized a new $15 billion share repurchase plan, complementing $7.2 billion executed in the first nine months of the fiscal year. These capital returns underscore management’s commitment to delivering shareholder value, even as it retains flexibility to invest in strategic growth initiatives.

In a post-earnings analysis, Bank of America outpaced peer Truist in key growth metrics, with year-over-year EPS growth of 11.7% against 7.9% for Truist. BAC’s selective branch expansion added 175 new financial centers across underserved markets, compared to 120 by its rival, and its digital customer interactions rose 28% year-over-year—10 percentage points higher than the industry average. Investors will also note BAC’s heavier focus on commercial loan origination, targeting higher-margin corporate segments, which may support continued net interest income growth even if consumer demand softens.