Bank Of America Stock Earnings Reports

Bank of America delivered a strong quarter with broad-based organic revenue growth and improving efficiency. Key financials: revenue up 15% YoY to $31.6B, net income $9.1B (+27% YoY), EPS $1.21 (+34% YoY), FTE NII ~$16.2B (+9% YoY), efficiency ratio improved to 59%, and ROTCE of 17%. Management reported 6.6% operating leverage for the quarter and raised full-year operating leverage expectations to 300–400 bps (first half already +450 bps). Balance sheet and funding: assets steady (~$3.5T), average deposits $2.02T (+2.5% YoY) with 12th consecutive quarter of deposit growth, loan balances grew (average loans $1.2T, +8% YoY), and CET1 ratio was 11.2% with ~$202B in common equity Tier 1 capital. Fee businesses were strong: investment banking fees +50% YoY, sales & trading revenue +33% YoY (record/very strong quarter for Global Markets), and GWIM reported record revenue and AUM flows. Management highlighted disciplined cost control alongside continued investments in technology and AI: >300 approved AI use cases, 114 live generative AI use cases, and 400k prompts/day to improve productivity and client engagement. Credit remained stable: provision and net charge-offs ~ $1.4B each, non-performing loans ~ $5.8B, and reservable criticized commercial exposures improved. Capital returns: $8B returned this quarter via dividends and buybacks. Guidance/forward-looking: management now expects full-year 2026 NII growth at the upper end of previously stated 6–8% range (assumes modest loan/deposit growth and current forward curve including one 25 bp hike in Sep), and reiterated continued focus on balance sheet optimization and relationship-driven deposit growth. Overall takeaway for investors: solid, diversified earnings growth with improving margins and efficiency, prudent credit posture, active capital returns, and meaningful investment/early benefits from AI — supporting confidence in sustained earnings power.