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Dec 31, 2025
Bank of America Q4 2025 Earnings Report
Bank of America reported higher revenue and net income in Q4 2025, driven by growth in sales & trading, net interest income, and consumer banking activity.
Key Takeaways
Bank of America delivered strong Q4 2025 results, with net income rising to $7.6 billion and EPS reaching $0.98. Revenue grew 7% year-over-year, led by record sales & trading results and continued loan and deposit growth. Operating leverage and efficiency ratio also improved, reflecting effective cost management.
Net income increased to $7.6 billion, up 12% from Q4 2024.
Sales & trading revenue reached a record $4.5 billion, with equities up 23%.
Net interest income rose to $15.8 billion, up 10% YoY.
Efficiency ratio improved to 61% with positive operating leverage of 3.3%.
Revenue by Segment
Forward Guidance
Bank of America expects to deliver ~200 bps of operating leverage in FY26, supported by growth in net interest income and continued efficiency improvements.
Positive Outlook
- Expect FY26 NII to grow 5% to 7% YoY.
- 1Q26 NII projected to grow ~7% YoY despite fewer days.
- Operating leverage targeted at ~200 bps for FY26.
- Efficiency ratio improvement continues into FY26.
- Consumer and commercial loan growth trends remain positive.
Challenges Ahead
- 1Q26 impacted by seasonally higher expenses (e.g. payroll taxes).
- Lower interest rates may reduce NII by $2B over next 12 months.
- CET1 ratio declined 20 bps QoQ due to accounting changes.
- Noninterest income declined sequentially from Q3.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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