Bank of America (BAC) Q1 2025 Earnings
How Did BAC Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +10.53%.
Did BAC Beat Earnings? Q1 2025 Results
Yes. Bank of America reported Q1 2025 earnings of $0.90 a share on Apr 15, 2025, beating the $0.82 consensus estimate by 10.3%. Revenue was $27.4B against a $26.9B estimate.
Bank of America kicked off 2025 on a strong note, posting first-quarter earnings per share of $0.90, clearing the $0.82 consensus estimate by 10.28%, while revenue climbed 6.0% year-over-year to $27.37 billion, edging past expectations by 1.71%. The headline beat was anchored by broad momentum across all four business segments, with Global Markets delivering its highest sales and trading revenue in over a decade at $5.66 billion, up 11% year-over-year, as equities set a fresh quarterly record of $2.19 billion. Net interest income of $14.44 billion and a 10% rise in noninterest income to $12.92 billion both contributed to the lift, while net income rose 11% to $7.40 billion. <a href="https://247wallst.com/investing/2025/04/15/live-nasdaq-composite-nflx-pops-3-bac-up-in-skittish-markets/">BAC shares moved higher</a> on the news amid an otherwise cautious market. Looking ahead, management guided fourth-quarter 2025 NII to approximately $15.50 to $15.70 billion, supported by fixed-rate asset repricing, though CEO Brian Moynihan acknowledged the company potentially faces a changing economic environment in the periods ahead.
- Net interest income growth driven by lower deposit costs, Global Markets NII, and fixed-rate asset repricing
- Noninterest income growth across all business segments
- Sales and trading revenue up 11%, 12th consecutive quarter of YoY growth
- Record equities sales and trading revenue
- 15% increase in asset management fees from strong AUM flows and higher market levels
- Combined credit/debit card spend up 4%
- Average deposits increased 3% to nearly $2 trillion — seven consecutive quarters of growth
- Average loans and leases increased 4%
- Absence of $700MM FDIC special assessment from 1Q24
“We had a good first quarter, with earnings per share of $0.90 up from $0.76 last year. This reflected growth in net interest income and fee income, while sales and trading delivered its 12th consecutive quarter of year-over-year revenue growth. Our business clients have been performing well; and consumers have shown resilience, continuing to spend and maintaining healthy credit quality. Though we potentially face a changing economy in the future, we believe the disciplined investments we have made for high-quality growth, our diverse set of businesses, and the team's relentless focus on Responsible Growth will remain a source of strength.”
Bank of America CEO, on the earnings call
What Was Bank of America's Outlook in Q1 2025?
Management guided 4Q25 NII on an FTE basis to approximately $15.5–$15.7 billion, driven by fixed-rate asset repricing (~$550MM benefit), additional day count (~$250MM), and low-single-digit loan and deposit growth (~$200MM), partially offset by the impact of four assumed 25bp rate cuts in May, July, September, and December 2025 (~$450MM headwind), with Global Markets NII contributing an estimated ~$350–$550MM in incremental growth. A 100bp parallel rate shift below the forward curve is estimated to reduce NII by $2.2 billion over the next 12 months. CEO Moynihan acknowledged the company 'potentially faces a changing economy in the future' but expressed confidence in the company's diverse business mix and disciplined investment strategy.
BAC YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $27.4B | $25.8B | +6.0% |
| Net Income | $7.4B | $6.7B | +10.8% |
| Operating Income | $8.1B | $7.3B | +11.8% |
BAC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.