Bank of America reported a quarterly net income of $11.9 billion, a 12% increase from the prior-year period, driven by robust loan growth and a stable net interest margin. The results exceeded expectations and reinforced confidence in the banking sector’s resilience.
- Bank of America reported Q4 net income of $11.9 billion, a 12% year-over-year increase
- Adjusted EPS of $1.42 exceeded analyst expectations
- Net interest margin held steady at 3.59% despite rising competition
- Total loans rose to $1.31 trillion, up 7% from Q3
- Wealth Management revenue reached $5.2 billion, up 8% YoY
- BAC shares rose 2.3% in pre-market trading following results
Bank of America delivered a solid fourth-quarter performance, reporting a net income of $11.9 billion, up 12% year-over-year, with adjusted earnings per share reaching $1.42, surpassing analyst estimates. The bank’s total revenue rose to $26.9 billion, fueled by higher net interest income and strong fee-based revenue across investment banking and wealth management. The results underscored continued strength in credit quality and loan demand, with total loans increasing 7% from the prior quarter to $1.31 trillion. Residential mortgage originations surged 24% compared to Q3, reflecting elevated refinancing activity amid a stabilizing rate environment. The bank maintained a net interest margin of 3.59%—slightly above guidance—supported by disciplined asset pricing and deposit cost management. Key segments contributed meaningfully to performance: Wealth Management generated $5.2 billion in revenue, up 8% on higher client assets and transaction volumes; Investment Banking revenue rose 15%, driven by increased M&A advisory activity and equity underwriting. The bank’s return on equity reached 14.5%, reflecting efficient capital deployment. Market reaction was positive, with BAC shares gaining 2.3% in pre-market trading. JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C) also saw modest gains, indicating broad sector confidence. Investors are particularly attentive to the bank’s forward guidance, which reaffirmed full-year 2026 revenue growth expectations in the mid-single-digit range, despite macroeconomic uncertainty. The developments signal ongoing financial sector stability, with large banks demonstrating the ability to navigate rate volatility and maintain profitability through diversified revenue streams and prudent risk controls.