Bank Of America Corp
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.08%.
Did BAC Beat Earnings? Q2 2025 Results
Bank of America delivered a solid second quarter, posting earnings of $0.89 per diluted share against a consensus estimate of $0.87, a 2.18% beat, even as revenue of $26.46 billion came in slightly below the $26.77 billion analysts expected despite rising 4.3% year over year. The clearest driver of the quarter's strength was net interest income, which climbed 7% to $14.67 billion, marking the fourth consecutive quarter of sequential NII growth as fixed-rate asset repricing and deposit and loan expansion more than offset the drag from lower interest rates. Record sales and trading revenue of $5.33 billion in Global Markets and rising asset management fees added further lift. <a href="https://247wallst.com/investing/2025/07/16/live-will-bank-of-america-nyse-bac-soar-after-earnings/">Investors watching closely</a> ahead of results also got a capital return boost, with the bank announcing a new $40 billion buyback authorization and an 8% dividend increase for the third quarter. Management guided fourth-quarter NII to $15.50 to $15.70 billion, signaling continued momentum even as two rate cuts are assumed before year-end.
- Fourth consecutive quarter of sequential NII growth driven by fixed-rate asset repricing, Global Markets activity, and deposit and loan growth
- Eight consecutive quarters of deposit growth with average deposits of $1.97 trillion up 3% YoY
- Average loans and leases of $1.13 trillion increased 7% YoY with growth across every business segment
- 13th consecutive quarter of year-over-year sales and trading revenue growth
- Record 2Q sales and trading revenue of $5.3 billion and record 2Q Equities revenue
- Asset management fees up 9% to $3.6 billion driven by strong AUM flows and higher market levels
- Consumer card delinquency rates declined in 2Q25 vs. both 1Q25 and 2Q24
- Combined credit/debit card spend of $244 billion up 4% YoY
- Tangible book value per share increased to $27.71 from $25.37 a year ago
- Pretax, pre-provision income of $9.28 billion in 2Q25, up from $9.07 billion in 2Q24
“We delivered another solid quarter, with earnings per share up seven percent from last year. Net interest income grew for the fourth straight quarter, reflecting eight consecutive quarters of deposit growth and seven percent year-over-year loan growth. Consumers remained resilient, with healthy spending and asset quality, and commercial borrower utilization rates rose. In addition, we saw good momentum in our markets businesses. So far this year, we have supplied more capital to our businesses and returned 40 percent more capital to shareholders in the first half of this year than last year.”
Bank of America CEO, on the earnings call
Forward Guidance & Outlook
Bank of America guided 4Q25 net interest income (FTE basis) to approximately $15.5–$15.7 billion, up from $14.8 billion in 2Q25, driven by fixed-rate asset repricing (~$450MM benefit), balance sheet growth (low-single digit deposit growth, mid-single digit loan growth contributing ~$325–$525MM), one additional day (~$125MM), and Global Markets NII (~$50MM), partially offset by the impact of two assumed 25 bp rate cuts in September and October 2025 (~-$250MM). A 100 bp parallel downward shift in rates is estimated to reduce NII by $2.3 billion over the next 12 months. Management expects to deliver positive operating leverage in the second half of 2025.
BAC YoY Financials
BAC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.