Bank of America reports Q2 2026 net income of $9.1B, up 27% YoY, with EPS of $1.21

Bank of America disclosed second quarter 2026 net income of $9.1 billion, up 27% from $7.2 billion in the year-ago quarter, with diluted earnings per share of $1.21, up 34% from $0.90. Revenue increased 15% to $31.6 billion, driven by higher net interest income, sales and trading revenue, asset management fees, and investment banking fees. The company achieved operating leverage of 6.6% and improved its efficiency ratio by 359 basis points to 59%.

Credit quality improved with total net charge-offs of $1.4 billion, down $113 million from the year-ago quarter. The credit card charge-off rate declined to 3.55% from 3.82% in the prior year quarter, and both early and late stage credit card delinquency rates improved for the fifth consecutive quarter year-over-year. Provision for credit losses decreased to $1.4 billion from $1.6 billion in the year-ago quarter.

Bank of America reported second quarter 2026 net income of $9.1 billion, up 27% year-over-year, with diluted earnings per share of $1.21, up 34%. Revenue of $31.6 billion increased 15%, driven by 9% higher net interest income, 33% higher sales and trading revenue, 50% higher investment banking fees, and 20% higher asset management fees. The company delivered 6.6% operating leverage and improved its efficiency ratio to 59%. Return on equity reached 12.7%, up 259 basis points, and return on tangible common equity reached 17.0%, up 342 basis points.

Average deposits increased $49 billion, or 2%, to $2.02 trillion, while average loans and leases grew $88 billion, or 8%, to $1.22 trillion. The CET1 ratio remained stable at 11.2%, well above regulatory minimums, with CET1 capital of $202 billion. The company returned $8.0 billion to shareholders through $2.0 billion in dividends and $6.0 billion in share repurchases.

Provision for credit losses of $1.4 billion decreased from $1.6 billion in the prior-year quarter and was relatively flat versus the prior quarter. Net charge-offs of $1.4 billion decreased from $1.5 billion year-over-year and were relatively flat sequentially, reflecting stable credit quality.

All four business segments contributed to year-over-year growth. Consumer Banking net income of $3.3 billion increased 10% with 29% return on allocated capital. Global Wealth & Investment Management net income of $1.4 billion increased 42% with 26% ROAC. Global Markets net income of $2.6 billion increased 72% with 20% ROAC. Global Banking net income of $2.0 billion increased 20% with 15% ROAC.

The company disclosed its net interest income sensitivity as of June 30, 2026. A 100 basis point parallel upward shift in the forward curve would increase NII by $1.0 billion over the next 12 months, while a 100 basis point downward shift would decrease NII by $2.2 billion, indicating moderate asset sensitivity.

Bank of America disclosed second-quarter 2026 net income of $9.074 billion and diluted earnings per share of $1.21, up from $7.170 billion and $0.90 in Q2 2025. Total revenue for the quarter was $31.558 billion, a 15% increase from $0.0M in the prior-year quarter, driven by higher net interest income and noninterest income.

Net interest income for Q2 2026 was $15.997 billion, up 9% from $14.670 billion in Q2 2025. For the first half of 2026, net interest income totaled $31.742 billion, up from $29.113 billion in the first half of 2025. The increase reflects higher interest income on loans and leases and improved deposit spreads.

Investment banking fees for Q2 2026 totaled $2.138 billion, up 50% from $1.428 billion in Q2 2025, driven by higher underwriting income ($1.220 billion vs. $806 million) and financial advisory services ($558 million vs. $333 million). For the first half of 2026, investment banking fees reached $3.979 billion, up 35% from $2.951 billion in the prior-year period.

Bank of America's Common Equity Tier 1 capital ratio under the Standardized Approach was 11.2% at June 30, 2026, down from 11.5% at June 30, 2025. Average diluted common shares outstanding declined to 7,294.2 million in Q2 2026 from 7,651.6 million in Q2 2025, reflecting ongoing share repurchases that returned capital to shareholders.

Net charge-offs for Q2 2026 were $1.412 billion (0.47% of average loans), down from $1.525 billion (0.55%) in Q2 2025. Nonperforming loans, leases, and foreclosed properties totaled $5.870 billion at June 30, 2026, down from $6.104 billion a year earlier. The allowance for loan and lease losses was $13.114 billion (1.08% of loans), down from 1.17% a year earlier, reflecting improved credit quality.