Bank of America surpassed earnings and revenue estimates last quarter, buoyed by surging equities trading activity.
Earnings per share increased 25% year-over-year to US$1.11, above LSEG consensus estimates of $1.01. Revenue rose 7% to $30.43 billion, beating estimates of $29.93 billion.
“Earnings per share rose 25% year-over-year, starting 2026 with strong momentum. Net income of $8.6 billion reflected the team’s disciplined execution,” said chair and CEO Brian Moynihan.
“We remain watchful of evolving risks. However, we saw healthy client activity, including solid consumer spending and stable asset quality, indicating a resilient American economy.”
Net interest income climbed 9% to $15.75 billion. The company credited this to higher deposit and loan balances and strong activity in its Global Markets segment.
Global Markets sales and trading revenue climbed 13% to $6.4 billion. The increase was driven by a 30% jump in revenue from equities trading.
Its Consumer Banking division saw revenue rise 5% to $11.0 billion, with average loans and leases growing by 2% to $322 billion.
Global Wealth and Investment Management revenue was up 12% to $6.7 billion due to a 15% increase in asset management fees.
Bank of America’s Common Equity Tier 1 ratio was 11.2%, dipping from 11.8% one year ago. Its provision for credit losses was $1.3 billion, down from $1.5 billion one year ago.
Rivals Citigroup and Goldman Sachs also beat both top and bottom line estimates last quarter, though Wells Fargo fell short.
Bank of America (NYSE: BAC) shares closed 1.8% higher at $54.32, and ticked up 0.1% after-hours. Its market capitalisation is $388.15 billion.
