Bank of America CEO Brian Moynihan said he remained bullish on the US economy as the financial giant posted a bigger-than-expected quarterly profit, with volatile markets fueled the bank’s trading gains.
The Charlotte-based mega bank reported net income of $7.6 billion, or 98 cents per share for the three months ending Dec. 31. That’s a 12% jump from $6.8 billion, or 83 cents per share, a year ago.
Total revenue after interest costs rose 7% to $28.4 billion, beating analysts’ estimates of around $27.9 billion.
For all of 2025, profits hit $30.5 billion, up from $27 billion the prior year, with per-share earnings climbing 19% to $3.81.
CEO Moynihan said: “With consumers and businesses proving resilient, as well as the regulatory environment and tax and trade policies coming into sharper focus, we expect further economic growth in the year ahead. While any number of risks continue, we are bullish on the US economy in 2026.”
Shares of Bank of America rose about 2% in premarket trading, adding to a stock that’s gained roughly 15% over the past year amid broader market gains.
Net interest income, which is the difference between what the bank earns on loans and pays out on deposits, climbed 10% to $15.8 billion.
Average loans increased 8% to $1.17 trillion, while deposits rose 3% to $2.01 trillion, indicating that customers are remaining loyal despite better yields available elsewhere.
BofA’s trading desks also shone amid global jitters about Trump’s tariffs and conflict in the Middle East and Ukraine.
Revenue from buying and selling stocks, bonds, and currencies in the global markets division surged 10% to $5.3 billion.
On the cost side, non-interest expenses, which are items such as salaries, technology upgrades, and branch operations, increased 4% to $17.4 billion.
But efficiency improved, with the ratio of expenses to revenue dropping to 61% from 63%, meaning the bank is squeezing more profit from each dollar.
Loan loss provisions — cash set aside for souring debts — fell to $1.3 billion from $1.5 billion, a sign that consumers and businesses are holding up well as inflation eases and jobs stay plentiful.
BofA said its consumer banking unit, which handles checking accounts, credit cards, and mortgages, earned $3.3 billion on $11.2 billion in revenue, up 5% thanks to steady spending.
Wealth management for richer clients pulled in $1.4 billion on a 10% revenue rise to $6.6 billion, boosted by fees and a 12% loan bump.
Corporate banking netted $2.1 billion on $6.2 billion in revenue, up 2%, with deposits ballooning 13%. Markets chipped in $1 billion, while other areas lost $132 million.
The bank said its balance sheet held total assets at $3.41 trillion, and a core capital cushion, known as the Common Equity Tier 1 ratio, a key measure of financial strength, stood at a solid 11.4%
The Charlotte-based lender, with roots tracing to 1904, serves 69 million customers and manages $3 trillion in wealth assets.
It navigated 2023’s regional bank turmoil unscathed but faced scrutiny over capital rules, consumer fees, and claims by conservatives that were being debanked.
