Bank Of America Stock Earnings Reports

Bank of America reported a strong Q2 with diversified, broad-based growth across businesses. Revenue increased 15% YoY to $31.6B; net income rose 27% to $9.1B and EPS jumped 34% to $1.21. Net interest income (FTE ~$16.2B, +9% YoY) and fee businesses (22% non‑interest income growth) were key drivers — notably investment banking (+50% YoY to >$2.1B), sales & trading (+33% to $7.2B), and wealth management. Average deposits grew to $2.02T (+2.5% YoY) with continued non‑interest bearing growth; average loans/leases rose to ~$1.2T (+8% YoY). The firm generated strong operating leverage (6.6% for the quarter; 660 bps first‑half) and improved efficiency to 59%; management now expects full‑year operating leverage of 300–400 bps. Management raised confidence in NII, now expecting full‑year 2026 NII growth at the top end of its previously updated 6–8% range (assumes current forward curve and modest H2 loan/deposit growth). Credit metrics were stable: provision expense and net charge-offs ~ $1.4B each, NPLs ~$5.8B, and reserves modestly released; underwriting discipline remains emphasized. Capital returns were strong ($8B returned via dividends and buybacks), CET1 was 11.2% (~$202B), and ROTCE was 17%. The bank is prioritizing continued investments in technology and AI: >200,000 teammates use AI tools, >300 approved AI use cases and 114 live generative AI use cases to boost productivity and client servicing. Overall message: diversified revenue strength, continued loan & deposit growth, disciplined credit and capital management, with productivity upside from AI.