Bank Of America Corp
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +10.53%.
Did BAC Beat Earnings? Q1 2025 Results
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
Forward Guidance & Outlook
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
BAC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.