Bank Of America Stock Earnings Reports

Bank of America reported a strong Q2 with broad-based revenue and earnings growth. Total revenue rose 15% y/y to $31.6B and net income was $9.1B (EPS $1.21, +34% y/y). Net interest income (FTE) was ~$16.2B, up 9% y/y, and management now expects full-year 2026 NII growth toward the high end of its 6%–8% range. Non-interest income grew 22% y/y, driven by wealth management, investment banking (fees +50% y/y to >$2.1B) and a record quarter for sales & trading ($7.2B, +33%). Deposits and loans both grew (average deposits $2.02T, +2.5% y/y; average loans $1.20T, +8% y/y) with 12 consecutive quarters of deposit growth and nine consecutive quarters of loan growth. Efficiency and operating leverage improved materially: the efficiency ratio improved to 59% and the company delivered 6.6% operating leverage in the quarter and 450 bps of operating leverage in H1; full-year operating leverage is now guided to 300–400 bps. AI adoption is accelerating internally (300+ approved AI use cases, 114 live generative AI use cases, 400k+ prompts/day) and is positioned as a productivity driver. Credit metrics remained stable: provision and net charge-offs were ~$1.4B each, non-performing loans ~$5.8B, and a modest reserve release; management emphasized continued disciplined underwriting. Capital returns were strong with $8B returned in the quarter; CET1 was ~11.2% (~$202B). Management remains constructive on the macro backdrop (consumer spending, GDP revisions) but noted inflation/monetary policy as risks. Overall, the quarter reflects diversified revenue drivers, improving margins and efficiency, continued investment in technology/AI, stable credit, and a clearer path to higher NII and stronger operating leverage for the year.