Bank of America (BAC) earnings Q1 2026

2 1 minute read

Bank of America reported strong first-quarter earnings, surpassing both revenue and earnings per share estimates. The bank’s net income rose 17% to $8.6 billion, with earnings per share reaching $1.11, the highest in almost two decades.

Revenue also saw a significant increase, climbing 7.2% to $30.43 billion. This growth was driven by rising net interest income, higher trading revenue, and fees from investment banking and asset management. Equities trading played a major role in the bank’s success, with revenue in that business jumping 30% to $2.83 billion.

Investment banking also exceeded expectations, posting a 21% increase to $1.8 billion. Net interest income, a key metric for loan-making profitability, saw a 9% increase to $15.9 billion. This growth was attributed to higher loan and deposit balances, fixed-rate asset repricing, and market activity.

Bank of America raised its net interest income growth guidance for the year from 5-7% to 6-8% due to its strong performance in the first quarter. The bank’s provision for credit losses was lower than the year-earlier period, indicating that borrower quality remained strong.

CEO Brian Moynihan highlighted the positive performance of the bank, noting that consumers are spending, credit quality is improving, and corporate clients are utilizing their lines of credit. Despite uncertainties, both U.S. and global companies are performing well.

While fixed income revenue fell short of expectations, other divisions such as consumer banking and global wealth saw significant growth in net income. The net-charge-off ratio improved to 0.48%, indicating a lower proportion of total loans deemed uncollectible.

Overall, Bank of America’s return on tangible common equity improved to 16%, reflecting increased profitability. The bank’s solid performance in the first quarter positions it well for continued success in the future.

This content has been seamlessly integrated into a WordPress platform, maintaining the original HTML tags, headings, and key points from the original article.