Bank Of America Stock Earnings Reports

Bank of America reported a very strong Q2 with broad-based revenue and earnings growth driven by net interest income (NII), investment banking, wealth management fees, and sales & trading. Key financials: revenue up 15% YoY to $31.6B, net income $9.1B (+27% YoY), EPS $1.21 (+34%), operating leverage 6.6% (660 bps H1), efficiency ratio improved to 59%, and ROTCE 17%. NII (FTE) was ~$16.2B (+9% YoY) and management raised its 2026 NII outlook to the upper end of a previously disclosed 6%-8% range, assuming modest loan/deposit growth and the current forward curve. Deposit growth continues (12th consecutive quarter of average deposit growth) with diversified, high-quality core operating accounts; average deposits $2.02T. Loan growth remained broad-based (average loans $1.2T, +8% YoY), led by commercial lending. Fee businesses performed strongly (non-interest income +22% YoY), with sales & trading and investment banking particularly robust (sales & trading revenue $7.2B, +33%; investment banking fees +50% to >$2.1B). Credit metrics stayed stable: provision and net charge-offs ~$1.4B each; NPLs ~$5.8B; modest reserve release and improving reservable criticized commercial exposures. Capital returns were strong ($8B returned in the quarter); CET1 ratio 11.2% and CET1 capital ~$202B. Management emphasized ongoing investments in technology and AI (300+ approved AI use cases, 114 live generative AI use cases, >400k prompts/day) as drivers of productivity and future operating leverage. Guidance/positioning: management now expects full-year operating leverage of 300–400 bps (versus prior longer-term target of 200–300 bps) and to be at the high end of the NII growth range, while continuing to invest across the franchise and maintain disciplined credit and capital management.