Bank of America to award stock worth US$1 billion to non-executive employees

THE Bank of America (BOA) said on Tuesday (Jan 20) it will award about US$1 billion in equity to all employees except senior management, after the lender capped a strong year marked by a surge in profits.

The awards will equate to nearly 19 million shares of common stock, and mark the ninth straight year of employee awards at the second-largest US bank.

Last week, BOA beat estimates for fourth-quarter profit, as its traders capitalised on volatile markets, and it brought in higher income from interest payments.

The lender’s 2025 profit surged to US$30.5 billion from US$27 billion a year earlier. BOA shares ended the year with an increase of about 25 per cent, marking a third straight year of gains.

The banking industry is eyeing another year of strong dealmaking, with investment banking revenues expected to benefit from a rebound in large mergers and acquisitions and high-profile initial public offerings.

Interest income is also expected to get a lift from a pickup in loan demand, as lower borrowing costs encourage customers to take on debt. REUTERS