December 19, 2025 – New York, U.S. – Bank of America (BofA) is preparing to significantly increase year-end bonus payouts for its top-performing investment bankers, following a strong year of deal activity, according to sources familiar with the matter. The bank’s bonus pool for the investment banking division is expected to expand, rewarding top dealmakers with potential increases of around 20%, while mid-level performers may see flat payouts.

BofA Investment Banking Performance

BofA ranks as the third-largest global investment bank by revenue, maintaining its position from 2024, according to preliminary Dealogic data. The bank recently played a key advisory role in Norfolk Southern’s $85 billion combination with Union Pacific, one of the largest rail mergers in history, generating $130 million in fees for the bank.

CEO Brian Moynihan highlighted BofA’s strategy to grow its market share in investment banking fees by 50–100 basis points over the next three to five years. The bank plans to:

• Retain top M&A talent and hire strategically in key areas
• Participate more in mega-deals valued at $5 billion and above
• Expand its share of middle-market transactions

Bonus Trends Across Wall Street

The increase in BofA bonuses reflects a broader Wall Street trend, with compensation expected to rise for traders and investment bankers for the second consecutive year. This uptick comes amid high deal volumes and market volatility, according to financial compensation consultancy Johnson Associates.

The upcoming bonus pool is projected to be the largest since 2021, when surging deals and record profits drove significant payouts across major U.S. banks, including rivals JPMorgan Chase and Goldman Sachs. BofA traditionally communicates final bonus figures to its staff in January, and discussions remain ongoing, with figures subject to change.

Strategic Focus for BofA

BofA aims to further strengthen its investment banking division by expanding participation in mergers and acquisitions, targeting higher-value transactions, and increasing its share of fees in the competitive global investment banking landscape. The bonus increases are seen as a key tool to retain top talent and incentivize high performance across advisory and deal-making functions.