Bank of America Corporation

Bank of America reported second-quarter revenue of $31.6 billion, up 15% year over year, net income of $9.1 billion, up 27%, and EPS of $1.21, up 34%. NII on an FTE basis was approximately $16.2 billion, up $253 million from Q1 and $1.3 billion, or 9%, from a year ago. The efficiency ratio improved to 59%, operating leverage was 6.6%, and return on tangible common equity was 17%. Average deposits were $2.02 trillion, up $49 billion or 2.5% year over year, and average loans and leases were $1.2 trillion, up $88 billion or 8% year over year. For full-year 2026, management expects NII growth at the upper end of the 6%-8% range and operating leverage of 300-400 basis points.

Brian Moynihan emphasized broad-based strength across every business, saying revenue and net income increased in every segment and that organic growth, operating leverage, and efficiency gains were consistent across the franchise. He highlighted record or near-record performance in several areas, including investment banking, markets, and wealth, and framed AI as a long-term productivity and client-service lever with over 300 approved use cases and more than 400,000 prompts a day. His tone was confident and constructive, repeatedly stressing the company’s scale, diversified growth, and strong returns.

Alastair Borthwick focused on balance sheet strength, deposit mix, loan growth, and the drivers of NII. He cited average deposits of $2.02 trillion, average loans and leases of $1.2 trillion, a CET1 ratio of 11.2%, RWA of $1.8 trillion, and provision expense and net charge-offs of about $1.4 billion each, both roughly unchanged from Q1. He also said non-interest expense was about $18.6 billion, up about $100 million sequentially and $1.4 billion year over year, and explained the higher full-year operating leverage outlook by pointing to stronger-than-expected first-half performance and continued revenue momentum.

Analysts pressed on deposit pricing, the sustainability of operating leverage, and whether the NII guide was conservative. Management said deposit mix is the key driver, with growth in operating accounts and non-interest-bearing balances helping offset competitive pricing, and reiterated that the updated NII guide assumes modest deposit growth, continued loan growth, and some benefit from repricing. They also said markets NII should be flat to slightly down, while most NII growth should come from Global Banking books and balance sheet optimization, including paying down repo and institutional CDs over time.