Bank of America (BAC) investor relations material

Executive summary

• Revenue was $30.0B, up 3% YoY; reported net income was $6.9B and diluted EPS $0.91. Excluding the $1.2B regulatory settlement charge, adjusted net income was $8.1B and EPS $1.08.

• Higher NII and wealth fees supported results, while lower sales and trading revenue and investment banking fees weighed on performance.

Financial highlights

• NII was $16.4B GAAP and $16.6B FTE, up 8% YoY; noninterest income was $13.5B, down 2%.

• Noninterest expense was $19.7B including the settlement charge; adjusted expense was $18.5B, up 7% YoY and down 1% QoQ.

• Provision for credit losses was $1.3B, down $0.1B QoQ; net charge-offs were $1.3B, down YoY and QoQ.

• Adjusted pretax, pre-provision income was $10.2B versus $9.0B reported.

Outlook and guidance

• FY 2026 NII growth guidance remained ~8%; 2027 growth was expected at 8% or more, with sequential improvement forecast in Q4 and through 2027.

• Outlook assumed three 25-bp rate increases through June 2027; a 100-bp upward shift in forward rates was estimated to add $1.4B to next-12-month NII, while a downward shift would reduce it by $1.9B.

• Management expected operating leverage to return in Q4; the medium-term target remained 200–300 bps, with 2027 guidance to be updated in Q4.

• Modest loan and deposit growth and continued fixed-rate asset repricing were expected; core banking NII growth was forecast to exceed the 8% all-in 2027 outlook.