Its sales and trading revenue rose 10% to US$4.5 billion in Q4.

Bank of America’s profit rose, as its traders brought in more revenue from spurred client activity in the fourth quarter due to increased volatility in the markets.

Softening US labour demand, political gridlock and concerns over a potential AI-driven stock bubble rattled investors, prompting them to reshuffle their portfolios, while speculations about the Federal Reserve’s rate cuts further boosted trading.

Volatile markets tend to benefit investment banks as their trading desks generate higher revenue from increased client activity.

Bank of America’s sales and trading revenue rose 10 per cent to US$4.5 billion in the fourth quarter.

The bank reported a net income of US$7.6 billion, or 98 US cents per share, in the three months ended December 31, compared with US$6.8 billion, or 83 US cents per share, in the year earlier.