Bank of America (BAC) investor relations material

Executive summary

• Net income rose 17% year-over-year to $8.6B, with EPS up 25% to $1.11 and revenue up 7% to $30.3B, driven by higher net interest income, sales and trading, asset management, and investment banking fees.

• Operating leverage improved by 2.9% (290 bps), and the efficiency ratio improved by 170 bps to 61%.

• All business segments contributed to year-over-year growth in revenue, earnings, deposits, and loans.

• Maintained strong capital and liquidity positions, well above regulatory requirements.

• Returned $9.3B to shareholders through $7.2B in share repurchases and $2B in dividends.

Financial highlights

• Net interest income grew 9% year-over-year to $15.9B (FTE: $15.9B), driven by loan and deposit growth.

• Noninterest expense rose 4% to $18.5B, in line with guidance and reflecting higher revenue-related expenses and investments.

• Provision for credit losses was $1.3B, down from $1.5B in Q1 2025, reflecting benign credit results and modest reserve release.

• Return on tangible common equity (ROTCE) reached 16%.

• Book value per share increased 7% year-over-year to $38.66; tangible book value per share up 7% to $28.84.

Outlook and guidance

• Raised full-year 2026 NII growth guidance to 6%-8% versus 2025, assuming moderate loan and deposit growth.

• U.S. GDP growth expected at 2.8% for 2026, with global growth faster and inflation estimates at 2.4% in the U.S. and 2.5% globally.

• Expect more than 200 bps of positive operating leverage for the year.

• Effective tax rate expected to be just over 20% for 2026.

• Management remains watchful of evolving risks but notes healthy client activity and stable asset quality.