(Reuters) - Bank of America is set to award stock to most of its global employees for the eighth time since 2017, following a robust performance by the second-largest U.S. lender in 2024, according to an internal memo seen by Reuters on Friday.
The stock awards, which will be issued in addition to year-end incentive awards, would be granted to employees earning an annual total compensation of up to $500,000, covering about 97% of the lender's global workforce.
BofA had 213,193 staff at the end of 2024, which means the stock awards will amount to slightly over $1 billion.
Earlier this week, BofA's fourth-quarter profit beat expectations, boosted by trading activity. The lender also predicted it would earn higher interest income for 2025.
For the full year of 2024, the banking giant's revenue surpassed $100 billion, driven by strong growth in fee income, and its profit came in at $27.1 billion.
"Every source of revenue increased, and we saw better than industry growth in deposits and loans," BofA CEO Brian Moynihan said in an earnings release. "We believe this broad momentum sets up 2025 very well."
Wall Street CEOs also voiced confidence that the incoming U.S. administration would maintain a business-friendly environment beneficial to banks. This comes as the country's top lenders report a surge in profits, driven by an uptick in dealmaking and trading activities.
Bankers expect global deal volumes to surpass $4 trillion in 2025, the highest level in four years.
The broader operating environment has been favorable for the banking industry, propelled by strong equity markets and analysts' expectations that President-elect Donald Trump will implement a deregulatory and lower-tax agenda.
Earlier this month, Reuters reported, citing a source, that BofA's bonus pool for investment bankers will probably rise 10% for the previous year.
The bank's stock surged 30.5% in 2024, outperforming the broader equity markets.
Stock awards are typically issued to reward employees, retain top talent, and align their interests with the company's long-term success.