Bank of America (BAC) Q2 2026 earnings summary

Executive summary

• Net income rose 27% year-over-year to $9.1B, with EPS up 34% to $1.21, driven by strong revenue growth and improved efficiency.

• Revenue increased 15% year-over-year to $31.6B, reflecting higher net interest income, sales and trading, asset management, and investment banking fees.

• All business segments contributed to growth, with notable gains in Consumer Banking, Global Banking, Global Markets, and Wealth & Investment Management.

• Returned $8B to shareholders via dividends and buybacks; CET1 ratio at 11.2%.

• Total assets rose $87.5B since year-end 2025 to $3.5T, mainly from increased securities borrowing, receivables, and commercial loan growth.

Financial highlights

• Net interest income grew 9% year-over-year to $16.0B, supported by higher loan and deposit balances and fixed-rate asset repricing.

• Noninterest income increased 22% to $15.6B, led by wealth management, investment banking, and trading.

• Provision for credit losses decreased to $1.4B from $1.6B in 2Q25; net charge-off ratio improved to 0.47%.

• Efficiency ratio improved to 59%; operating leverage was 6.6%.

• Average deposits reached $2.02T, up 2% year-over-year; average loans and leases up 8% to $1.22T.

Outlook and guidance

• Full-year 2026 NII growth expected at the upper end of 6%-8% range, assuming modest loan and deposit growth and one rate hike.

• Full-year operating leverage now guided to 300-400 basis points, up from previous expectations.

• Management remains constructive on loan growth and expects continued strong performance in the second half.

• The company remains asset sensitive to parallel interest rate moves, with a $1.0B positive impact to net interest income from a +100 bps shift.

• Economic outlook remains resilient, with U.S. GDP growth estimates at 2.8% for 2026 and consumer spend up 7% year-over-year in 1H26.