Bank of America (BAC) investor relations material

Executive summary

• Net income rose 27% year-over-year to $9.1B, with EPS up 34% to $1.21, driven by strong revenue growth and improved efficiency.

• Revenue increased 15% year-over-year to $31.6B, reflecting higher net interest income, sales and trading, asset management, and investment banking fees.

• All business segments contributed to growth, with notable gains in Consumer Banking, Global Banking, Global Markets, and Wealth & Investment Management.

• Returned $8B to shareholders via dividends and buybacks; CET1 ratio at 11.2%.

• Efficiency ratio improved to 59%; operating leverage was 6.6%.

Financial highlights

• Net interest income rose 9% year-over-year to $16.2B, driven by loan and deposit growth.

• Non-interest income grew 22%, led by wealth management, investment banking, and trading.

• Investment banking fees up 50% to $2.1B; sales and trading revenue up 33% to $7.2B.

• Average deposits reached $2.02T, up 2.5% year-over-year; average loans and leases up 8% to $1.22T.

• Provision for credit losses was $1.4B, down from $1.6B in 2Q25.

Outlook and guidance

• Full-year 2026 NII growth expected at the upper end of 6%-8% range, assuming modest loan and deposit growth and one rate hike.

• Full-year operating leverage now guided to 300-400 basis points, up from previous expectations.

• Management remains constructive on loan growth and expects continued strong performance in the second half.

• Economic outlook remains resilient, with U.S. GDP growth estimates at 2.8% for 2026 and consumer spend up 7% year-over-year in 1H26.

• Inflation is projected to moderate, with U.S. CPI expected at 2.4% in 2026.