Bank Of America Corp
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.02%.
Did BAC Beat Earnings? Q3 2025 Results
Bank of America delivered a standout third quarter for fiscal 2025, posting earnings per share of $1.06 against a consensus estimate of $0.95, a beat of 12.04%, while revenue climbed 10.8% year-over-year to $28.09 billion, topping analyst forecasts by 2.29%. The headline driver was a record $15.23 billion in net interest income, up 9% from a year ago and marking the fifth consecutive quarter of sequential NII growth, underscoring the bank's ability to capitalize on its deposit and lending franchise as average deposits rose 4% to $1.99 trillion and average loans grew 9% to $1.15 trillion. Credit quality added further lift, with provision for credit losses falling to $1.29 billion from $1.54 billion a year earlier and net charge-offs declining to a 0.47% ratio. Looking ahead, management guided fourth-quarter NII to a range of $15.60 billion to $15.70 billion, representing approximately 8% growth versus the prior-year period, signaling continued confidence in the bank's earnings trajectory entering 2026.
- Record net interest income driven by fixed-rate asset repricing, higher deposit and loan balances, and Global Markets activity
- Investment banking fees surged 43% YoY to $2.0B, with 136 bps gain in market share to #3 ranking
- Sales and trading revenue up 9% YoY to $5.4B, marking 14th consecutive quarter of YoY growth
- Asset management fees grew 12% to $3.9B from higher market valuations and strong AUM flows
- Average loan growth of 9% YoY across all business segments, 20th consecutive quarter of growth
- Average deposit growth of 4% YoY, 9th consecutive quarter of sequential growth
- Net charge-off ratio improved to 0.47% from 0.58% a year ago
- Operating leverage of 5.6% as revenue growth outpaced expense growth
- Digital engagement continued to grow with 49 million active digital banking users and 4.2 billion digital logins
“Strong net income growth drove third quarter diluted earnings per share up 31% from last year. This in turn drove strong improvement in our returns on assets and equity. Revenue grew 11% year-over-year. Strong loan and deposit growth, coupled with effective balance sheet positioning, resulted in record net interest income. We also saw strong fee performance from our market-facing businesses. As revenues grew at a much faster rate than expenses, we drove good operating leverage and an efficiency ratio below 62%. With continued organic growth, every line of business reported top and bottom-line improvements. I thank our teammates for a strong quarter.”
Bank of America CEO, on the earnings call
Forward Guidance & Outlook
Bank of America expects 4Q25 NII (FTE) of $15.6B to $15.7B, up approximately 8% versus 4Q24. The company expects to deliver operating leverage in 4Q25. A 100 bps parallel rate shift below the September 30, 2025 forward curve is estimated to reduce NII by approximately $2.2B over the next 12 months.
BAC YoY Financials
BAC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.