Jan 16 (Reuters) -

Bank of America BAC.N reported higher profit on Thursday as

its investment bankers capitalized on resurgence in dealmaking

in the fourth quarter while the lender predicted it would earn

more interest income in 2025.

The earnings mirror those of rivals across Wall Street

including JPMorgan ( JPM ), Goldman Sachs ( GS ), Wells Fargo ( WFC )

, and Citigroup ( C/PN ), whose results were buoyed by a

dealmaking rebound and stronger equity markets.

"Every source of revenue increased, and we saw better than

industry growth in deposits and loans," CEO Brian Moynihan said.

"This broad momentum sets up 2025 very well."

Shares rose 2.7% in premarket trading.

Wall Street profits rebounded last year as mergers and

acquisitions recovered from a decade-low in deal volumes in

2023. Capital markets also roared back as improving confidence

spurred companies to issue equity and debt.

Bankers anticipate a stronger 2025 for dealmaking, helped by

President-elect Donald Trump's vow to implement pro-business

policies.

BofA's investment banking fees jumped 44% to $1.7 billion in

the fourth quarter, compared with a year earlier.

Across the industry, global investment banking revenue

jumped 26% to $86.80 billion, led by a 33% surge in North

America, according to data from Dealogic. BofA earned the

third-highest revenue among banks globally.

Meanwhile, equity markets rallied in the fourth quarter

following the U.S. presidential election as investors bet on a

more business-friendly environment under President-elect Donald

Trump.

The S&P 500 stock index had a banner year, closing

23.3% higher in 2024 after racking up 57 all-time closing highs.

BofA's sales and trading revenue rose 10% in the

quarter, the 11th consecutive quarter of year-on-year growth, as

equities jumped 6% while fixed income, currencies and

commodities rose 13%.

The second-largest U.S. lender's net income rose to $6.7

billion, or 82 cents per share. That compares with $3.1 billion,

or 35 cents per share, a year earlier.

BofA stock gained 30.5% in 2024, underperforming rivals

JPMorgan ( JPM ), Wells Fargo ( WFC ), and Citigroup ( C/PN ) as well as

the KBW Bank Index.

(Reporting by Arasu Kannagi Basil in Bengaluru and Saeed Azhar

in New York, Editing by Lananh Nguyen and Anil D'Silva)