Bank of America (BAC) Q1 2026 earnings summary

Executive summary

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

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

• Operating leverage improved by 2.9%, and the efficiency ratio improved by 170 basis points to 61%.

• Average deposits surpassed $2 trillion for the 11th consecutive quarter, and average loans and leases grew 9% year-over-year.

• Returned $9.3 billion to shareholders through dividends and share repurchases.

Financial highlights

• Net interest income grew 9% year-over-year to $15.7 billion (FTE: $15.9 billion), driven by loan and deposit growth and asset repricing.

• Noninterest income increased 5% year-over-year to $14.5 billion.

• Noninterest expense rose 4% to $18.5 billion, reflecting higher revenue-related expenses and investments.

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

• Deposits increased to over $2 trillion, up 3% year-over-year; average loans grew nearly 9%.

Outlook and guidance

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

• U.S. GDP growth expected at 2.8% for 2026, with global growth projected to be faster.

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

• CET1 capital ratio expected to remain at least 50 basis points above regulatory minimums.

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