Bank of America Corp. reported fourth‑quarter 2025 results on January 14, 2026, delivering net income of $7.6 billion—an 18% year‑over‑year increase—and diluted earnings per share of $0.98, beating the consensus estimate of $0.96 by $0.02 (a 2.1% lift). The beat was driven by disciplined cost control and a favorable mix of higher‑margin loan and trading activity that offset modest increases in operating expenses.
Revenue rose 7% to $28.4 billion, surpassing the consensus estimate of $27.55 billion by $0.85 billion (3.1%). The top‑line growth was largely powered by a 10% jump in net interest income to $15.8 billion, reflecting a 6% rise in loan balances and a 3% increase in average interest rates, and a 23% increase in equity‑trading revenue to $2.02 billion, driven by higher trading volumes in U.S. equities and fixed‑income products. The revenue beat underscores the bank’s ability to capture margin expansion in a high‑rate environment while maintaining a diversified revenue mix.
Operating leverage improved as the efficiency ratio fell to 61% from 63% a year earlier, a 2‑percentage‑point improvement that translates into a $200 million increase in operating income. The tighter ratio reflects both lower cost growth relative to revenue and a shift toward higher‑margin wealth‑management and trading activities. Management attributed the efficiency gain to ongoing technology investments that reduced manual processing and to a disciplined hiring program that kept headcount growth in line with revenue growth.
Bank of America guided that 2026 net interest income will grow 5% to 7% on a fully tax‑equivalent basis, a range that aligns with expectations of continued loan and deposit growth and the repricing of fixed‑rate assets into a higher‑rate environment. The guidance signals confidence in sustaining margin expansion and supports the bank’s target of a 16‑18% return on tangible common equity over the next few years. The outlook also reflects management’s view that the U.S. economy will remain resilient, with consumer and business spending continuing to support loan demand.
Segment‑level data show Consumer Banking revenue at $11.2 billion, up 6% YoY, driven by a 4% rise in mortgage originations and a 3% increase in credit‑card balances. Global Wealth and Investment Management revenue reached $6.62 billion, up 8% YoY, supported by higher fee income from advisory services and a 5% increase in asset‑management balances. Global Banking revenue grew 5% to $9.1 billion, while Global Markets revenue increased 9% to $3.5 billion, largely due to higher trading volumes and fee income from capital‑market activities.
Management emphasized that the bank’s capital position remains strong, with a CET1 ratio of 11.4% and a return of $8.4 billion to shareholders in the quarter. CEO Brian Moynihan noted that “the bank finished 2024 with a strong fourth quarter. Every source of revenue increased, and we saw better than industry growth in deposits and loans.” He added that the bank’s “responsible growth” strategy continues to drive disciplined cost management and investment in technology, positioning the bank for sustained long‑term performance.
The market reaction was mixed, with some analysts noting that the earnings beat was modest and that the bank’s guidance, while positive, did not significantly alter expectations for the broader banking sector. Nonetheless, the results reinforce Bank of America's competitive positioning in a high‑rate environment and its ability to generate operating leverage across its core segments.
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