Bank of America Corporation

Second quarter revenue was $31.6 billion, up 15% year over year; net income was $9.1 billion, up 27%; EPS was $1.21, up 34%. On an FTE basis, NII was approximately $16.2 billion, up $1.3 billion or 9% year over year. Operating leverage was 6.6% and the efficiency ratio improved to 59%; ROTCE 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%. Provision expense and net charge-offs were both approximately $1.4 billion. Management said full-year 2026 NII growth is expected at the upper end of 6%-8%, assuming modest loan and deposit growth in the second half and current forward rates including one 25 bp hike in September. Full-year operating leverage is now expected to be 300-400 basis points.

Brian Moynihan framed the quarter as another step in a multi-quarter momentum run, emphasizing broad-based growth, strong returns, and consistent execution across every business segment. He highlighted organic growth, AI-enabled productivity, and a constructive economic backdrop, while noting that consumer spending and capital markets activity remain healthy. His tone was confident and upbeat, with repeated emphasis on consistency, diversification, and long-term earnings power.

Alastair Borthwick focused on balance sheet strength, noting ending assets of $3.5 trillion, CET1 at 11.2%, and Tier 1 common equity of nearly $202 billion. He said average deposits were $2.02 trillion, average loans and leases were $1.2 trillion, net interest yield was 2.08%, and NII grew to about $16.2 billion, with full-year NII expected at the upper end of 6%-8%. He also said non-interest expense was about $18.6 billion, credit metrics stayed stable, reservable criticized commercial exposures fell by about $2.3 billion to roughly $22 billion, and the firm returned $8 billion to shareholders in dividends and buybacks.

Analysts pressed management on deposit pricing, the sustainability of higher operating leverage, and whether the NII guide was conservative. Alastair said deposit pricing benefits came mostly from mix, especially growth in non-interest-bearing balances and operating accounts, and that the higher NII outlook reflects continued loan/deposit growth, fixed-rate repricing, and balance sheet optimization. On operating leverage, management said the first half delivered 450 basis points, with the full-year guide raised to 300-400 basis points because of strong NII and fee revenue, while AI should help both revenue and internal productivity over time. Questions also focused on commercial loan growth, rate sensitivity, and markets NII; management said loan growth remains broad-based and markets NII should be roughly flat to slightly down, not the main driver of second-half NII.