Bank of America Corporation

Reported second-quarter revenue was $31.6 billion, up 15% year over year. Net income was $9.1 billion, up 27%, and EPS was $1.21, up 34%. NII on an FTE basis was approximately $16.2 billion, up 9% year over year and $253 million sequentially; the efficiency ratio improved to 59% and 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%. The company ended the quarter with CET1 capital of nearly $202 billion and a CET1 ratio of 11.2%. 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. Management also said the current guide assumes modest loan and deposit growth in the second half and a forward curve with one 25 basis point rate hike in September.

Brian Moynihan framed the quarter as evidence that Bank of America’s diversified model is compounding well, with every business segment contributing and benefiting from scale, operating leverage, and improved efficiency. He emphasized broad client activity, healthy consumer spending, strong lending, and continued momentum in fee businesses and markets. He also leaned into AI as a strategic productivity tool, saying more than 300 AI use cases have been approved and over 114 are live generative AI use cases.

Alastair Borthwick focused on balance sheet strength, saying assets were steady at $3.5 trillion, CET1 was stable at 11.2%, and RWA rose to $1.8 trillion from loan growth and capital markets activity. He pointed to average deposits of $2.02 trillion, including $957 billion in consumer deposits, and average loans of $1.2 trillion as evidence of continued franchise growth. On the expense side, non-interest expense was about $18.6 billion, up roughly $100 million sequentially and $1.4 billion year over year, but the firm still produced 660 basis points of operating leverage in the quarter and has exceeded 450 basis points for the first half. He also noted provision expense and net charge-offs were both about $1.4 billion, largely unchanged from Q1, and reiterated that the firm is on track for full-year NII growth at the upper end of 6%-8%.

Analysts focused heavily on deposit pricing, the sustainability of strong operating leverage, and whether the NII guide was conservative. Management said deposit mix remains favorable, with growth in non-interest-bearing balances and operating accounts helping support lower funding costs, and that the firm has substantial liquidity, including about $800 billion of excess between cash/securities and loans. On operating leverage, management said the first-half result of 450 basis points was strong, but second-half comps are tougher, so the full-year outlook is 300-400 basis points. They also said commercial loan growth remains broad-based, card growth is improving, and markets NII should be roughly flat to slightly down, meaning most second-half NII growth should come from Global Banking.