Bank Of America Corp
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.09%.
Did BAC Beat Earnings? Q4 2025 Results
Bank of America closed out fiscal 2025 on a firm note, posting fourth-quarter earnings per share of $0.98 against a consensus estimate of $0.98, a 0.34% beat, even as reported revenue of $28.37 billion reflected a 39.6% year-over-year decline. The clearest engine behind the quarter's strength was a 10% surge in net interest income to $15.75 billion, the fifth consecutive quarter of sequential NII improvement, fueled by fixed-rate asset repricing, rising deposit balances that topped $2.00 trillion for the first time, and average loan growth of 8% year-over-year to $1.17 trillion. Credit quality added to the constructive picture, with net charge-offs falling to $1.29 billion from $1.47 billion a year ago. The bank returned $8.40 billion to shareholders through dividends and buybacks, 41% more than in 2024, while the CET1 ratio held at 11.4%. CEO Brian Moynihan expressed confidence heading into 2026, with management guiding for NII growth of 5-7% and approximately 200 basis points of operating leverage for the full year.
- Net interest income grew 10% YoY driven by Global Markets activity, fixed-rate asset repricing, and higher deposit and loan balances
- Average deposits topped $2 trillion, increasing 3% YoY with 10th consecutive quarter of sequential growth
- Average loans and leases grew 8% YoY to $1.17 trillion with growth across every business segment
- Asset management fees increased 13% to $4.1 billion reflecting higher market valuations and strong AUM flows
- Sales and trading revenue of $4.5 billion increased 10% marking 15th consecutive quarter of YoY growth
- Equities sales and trading revenue surged 23% driven by increased client activity
- Combined credit/debit card spend of $255 billion increased 6%
- Net charge-off ratio improved to 0.44% from 0.54% in 4Q24
- Efficiency ratio improved 194 bps YoY to 61%
- Tangible book value per share increased to $28.73 from $26.37 YoY
- Book value per share increased to $38.44 from $35.58 YoY
- Pretax, pre-provision income of $10.9 billion in Q4, up from $9.7 billion in Q4 2024
“Bank of America's fourth quarter results capped off a strong year of earnings as we delivered more than $30 billion in net income and EPS grew 19% over 2024. And with solid revenue growth, positive operating leverage and a lower efficiency ratio, we improved returns year-over-year for both the full year and the quarter.”
Bank of America CEO, on the earnings call
Forward Guidance & Outlook
For FY2026, Bank of America expects NII (FTE) to grow 5-7% year-over-year, with Q1 2026 NII (FTE) up approximately 7% YoY (noting two fewer days of interest accrual vs. Q4 and the full impact of the December rate cut). The company expects to deliver approximately 200 basis points of operating leverage in 2026, with Q1 2026 noninterest expense up approximately 4% YoY due to seasonally elevated payroll taxes. Management expects other income of $100 million to $300 million per quarter and a FY2026 effective tax rate of approximately 20%. The NII outlook assumes the January 9, 2026 forward curve materializes, continued fixed-rate asset repricing, and deposit and loan growth.
BAC YoY Financials
BAC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.