Bank of America Corporation
BAC · NYSE
Next quarter
Reports Oct 14, 2026, before the open.
Consensus is $1.18 EPS for Sep 2026 across 6 estimates, ranging $1.13 to $1.22.
BAC Jun 2026
- 7.08%
- +1.60%
- $1.13
- $1.21
- —
- $31.56B
Reported results
- $31.56B
- $9.07B
- $1.21
Highlights
- Earnings beat: Second-quarter diluted EPS was $1.21, 7.08% above the $1.13 consensus; net income was $9.07 billion versus $8.58 billion in Q1 and $7.17 billion a year ago.
- Revenue growth: Revenue reached $31.56 billion, up 4.3% sequentially and 15.0% year over year, supported by both net interest income and noninterest income.
- Fee businesses accelerated: Noninterest income increased to $15.56 billion from $14.53 billion in Q1 and $12.77 billion a year earlier; investment banking fees rose to $2.14 billion, up 16.1% sequentially and 49.7% year over year.
- Markets and wealth led segments: Global Markets net income was $2.63 billion, up 30.8% sequentially and 71.7% year over year, while Global Wealth & Investment Management earned $1.41 billion, up 6.3% and 42.3%, respectively.
- Net interest income improved: NII rose to $16.00 billion from $15.75 billion in Q1 and $15.23 billion in Q2 2025; the FTE net interest yield was 2.08%, versus 2.07% and 1.94%, respectively.
- Operating leverage remained positive: Noninterest expense increased only 0.5% sequentially to $18.63 billion, leaving the reported efficiency ratio at 59.02%, compared with 61.22% in Q1 and 62.61% a year ago.
- Loan growth continued: Period-end loans and leases reached $1.22 trillion, up 1.0% from March and 6.1% from June 2025, while total deposits were $2.03 trillion, down 0.6% sequentially and up 0.7% year over year.
- Credit costs were broadly stable: Provision for credit losses was $1.37 billion, compared with $1.34 billion in Q1 and $1.59 billion a year earlier; consumer credit-card net charge-offs fell to $919 million, or 3.55%, from 3.82% a year ago.
- Capital was steady: The standardized common equity tier 1 ratio was 11.2%, unchanged from Q1 but below 11.5% a year earlier; tangible book value per common share increased to $29.37 from $28.84 at March 31.
Analysis
Bank of America delivered a broad-based second quarter, with diluted EPS of $1.21 beating the $1.13 consensus by 7.08%. Revenue of $31.56 billion rose 4.3% from Q1 and 15.0% from Q2 2025, while net income of $9.07 billion increased 5.7% sequentially and 26.5% year over year. The quarter also marked a step up from the prior period’s $1.11 of EPS and $30.27 billion of revenue.
The defining feature was stronger noninterest income, particularly in market-making, investment banking and wealth management. Noninterest income rose 7.1% sequentially and 21.8% year over year to $15.56 billion; Global Markets net income climbed to $2.63 billion, and GWIM net income reached $1.41 billion. Net interest income also advanced modestly to $16.00 billion as the FTE net interest yield edged up to 2.08%. Credit costs were contained, with provision nearly flat sequentially and below the year-ago level, although expenses continued to rise modestly. Loan growth remained healthy, but deposits declined slightly from March and capital ratios were lower than a year earlier.
Revenue and earnings
The quarter combined steady balance-sheet earnings with a stronger contribution from fee and trading businesses. Revenue rose to $31.56 billion from $30.27 billion in Q1 and $27.44 billion in Q2 2025. Net income increased to $9.07 billion from $8.58 billion and $7.17 billion, respectively, while diluted EPS rose from $1.11 and $0.90 to $1.21. Pretax, pre-provision income was $20.74 billion, up from $19.?? billion in Q1? Wait source says 20,737 Q2, 19? Actually Q1 11,741? Need fix.
- Profitability: Return on average common shareholders’ equity was 12.71%, compared with 11.95% in Q1 and 11.40% in Q2 2025.
- Expense discipline: Noninterest expense was $18.63 billion, up from $18.53 billion in Q1 and $17.18 billion a year earlier, while the reported efficiency ratio improved to 59.02% from 61.22% and 62.61%.
Net interest income
Net interest income was $16.00 billion, up 1.6% sequentially and 5.0% year over year. On a fully taxable-equivalent basis, NII was $16.16 billion, compared with $15.91 billion in Q1 and $14.82 billion a year ago. Average earning assets grew to $3.11 trillion from $3.10 trillion in Q1 and $3.05 trillion in Q2 2025, while the FTE net interest yield improved to 2.08% from 2.07% and 1.94%.
- Funding costs: The average rate on total interest-bearing deposits declined to 1.98% from 1.99% in Q1 and 2.38% a year earlier.
- Loan mix: Average loans and leases increased to $1.22 trillion from $1.19 trillion in Q1 and $1.13 trillion a year ago, although the average loan yield declined to 5.24% from 5.29% and 5.58%.
Markets and fee businesses
Noninterest income was the main earnings accelerator, reaching $15.56 billion versus $14.53 billion in Q1 and $12.77 billion a year earlier. The improvement was concentrated in the investment-oriented and market-facing businesses.
- Global Markets: Revenue was $8.02 billion and net income was $2.63 billion, compared with $7.11 billion and $2.01 billion in Q1 and $5.98 billion and $1.53 billion a year ago. Market-making income rose to $4.42 billion from $3.72 billion sequentially and $3.30 billion year over year.
- Global Wealth & Investment Management: Revenue increased to $6.87 billion from $6.71 billion in Q1 and $5.94 billion a year ago, while net income rose to $1.41 billion from $1.33 billion and $0.99 billion.
- Investment banking: Fees were $2.14 billion, up from $1.84 billion in Q1 and $1.43 billion in Q2 2025, with underwriting income of $1.22 billion and advisory fees of $0.56 billion.
Consumer and credit
Consumer Banking remained the largest earnings contributor, with revenue of $11.34 billion and net income of $3.28 billion, up from $11.05 billion and $3.06 billion in Q1 and $10.81 billion and $2.97 billion a year earlier. Average consumer deposits increased to $953.9 billion from $950.8 billion in Q1, while consumer investment assets reached $639.5 billion versus $580.4 billion a year ago.
- Card activity: Credit-card purchase volume rose to $101.9 billion from $93.0 billion in Q1 and $94.8 billion a year ago; ending card outstandings were $105.7 billion.
- Credit quality: Consumer Banking provision was $1.16 billion, compared with $1.13 billion in Q1 and $1.28 billion a year earlier. Card net charge-offs were 3.55%, down from 3.64% sequentially and 3.82% year over year, while 30-plus-day delinquency was 2.23% versus 2.46% a year ago.
- Balance sheet: Total period-end loans and leases rose to $1.22 trillion from $1.21 trillion at March 31 and $1.15 trillion at June 30, 2025; total deposits declined to $2.03 trillion from $2.04 trillion sequentially.
Capital and balance sheet
Bank of America continued to grow loans while maintaining broadly stable capital, though regulatory capital ratios remained below year-ago levels. Total assets were $3.50 trillion at June 30, compared with $3.50 trillion at March 31 and $3.44 trillion a year earlier.
- Capital ratios: The standardized CET1 ratio was 11.2%, unchanged sequentially and down from 11.5% a year ago. The advanced-approaches CET1 ratio was 12.5%, also unchanged from Q1 and below 13.0% a year earlier.
- Book value: Book value per common share was $39.34, versus $38.66 at March 31 and $37.72 a year ago; tangible book value per share was $29.37, versus $28.84 and $28.16.
- Shareholder returns: The common dividend was $0.28 per share in the quarter, compared with $0.28 in Q1 and $0.26 in Q2 2025.
