Bank of America’s European banking unit in Dublin reported a 3.7 per cent dip in net profit last year to $1.28 billion (€1.09 billion) amid a drop in net interest income and increase in staff costs as employee numbers rose and the bank paid out more in bonuses.
However, the decline was cushioned by a rise in fees and commissions, thanks to higher advisory fees on mergers and acquisitions, and a jump in trading income, Bank of America Europe said in its latest financial statement filed with the Companies Registration Office (CRO).
The unit’s balance sheet increased by 23 per cent to $105.3 billion – crossing into three-digit billions for the first time.
Bank of America chose Dublin as its European Union (EU) headquarters in 2017 in the wake of the Brexit referendum. The unit has two main divisions: global banking and markets, and a support services division. The US banking giant has had a presence in the Republic since 1968.
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“Bank of America Europe DAC delivered record revenues and strong profitability in 2025, despite a more challenging interest rate environment,” said chief executive Antony Jancic. “We look forward to making further progress in the year ahead, notwithstanding current macroeconomic volatility.”
Jancic succeeded Fernando Vicario as chief executive Bank of America Europe and country executive for the Republic in December, as Vicario took charge of Merrill Lynch International, the group’s key UK unit.
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Bank of America Europe’s headcount in the Republic rose by 14 per cent last year to 1,094, while its total workforce across the Continent, including in France, Germany, Italy and Switzerland, increased by 10 per cent to 2,287.
Staff costs rose at a faster pace – by 14.4 per cent to $713 million – partly due to an increase in bonuses amid growth in M&A work and trading profits.
Net interest income dipped to $1.01 billion from $1.23 billion, amid declining official and market rates. The bank had $23.9 billion of excess cash stored with central banks at the end of 2025. The European Central Bank’s deposit rate fell from 3 per cent to 2 per cent in the first six months of last year.
Net fee and commission income soared almost 40 per cent to $645 million, while trading income surged 77 per cent to $483 million.
Growth in the balance sheet was driven as the value of so-called reverse repurchase agreements – where the banks lends cash and receives securities as collateral – almost doubled to $24.8 billion. Some $17.3 billion of the loans involved were due from other parts of the US banking giant.
Loans and advances to customers grew by 9.6 per cent to $31.8 billion. The bank took a net loan-loss provision of $72 million last year, bringing its total such provisions to $297 million.
Last September, Bank of America announced plans to create up to 1,000 new jobs in Belfast, marking its first operation in Northern Ireland. Recruitment for the new hub commenced in 2026.
