Bank of America Corporation

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%. Operating leverage was 6.6% and the efficiency ratio improved to 59%; ROTCE was 17%. FTE net interest income was about $16.2 billion, up $253 million sequentially and $1.3 billion, or 9%, from a year ago. Investment banking fees were more than $2.1 billion, up 50%, and sales and trading revenue was $7.2 billion, up 33%. The company returned $8 billion via dividends and share repurchases, ended with CET1 capital of nearly $202 billion, and a CET1 ratio of 11.2%. Forward guidance: management now expects full-year 2026 NII growth at the upper end of 6%-8% and full-year operating leverage of 300-400 basis points; the NII outlook assumes modest second-half loan and deposit growth and one 25 bp rate hike in September.

Brian Moynihan framed the quarter as another broad-based proof point for the firm’s diversified model, emphasizing that every business segment contributed to growth and operating leverage. He highlighted organic growth, strong client activity, and the company’s ability to turn revenue gains into higher returns while continuing to invest in technology and AI. His tone was confident and upbeat, but he also noted macro risks such as inflation and tighter monetary policy.

Alastair Borthwick focused on balance-sheet strength, noting ending assets of $3.5 trillion, average deposits of $2.02 trillion, and average loans and leases of $1.2 trillion. He said CET1 was stable at 11.2%, RWA was $1.8 trillion, provision expense and net charge-offs were both about $1.4 billion, and criticized commercial exposures declined by about $2.3 billion to roughly $22 billion. He also pointed to NII of about $16.2 billion, net interest yield of 2.08%, and said the company expects the balance-sheet optimization program to continue, including paying down repo and institutional CDs.

Analysts pressed on deposit pricing, the sustainability of operating leverage, and whether the updated NII guide was conservative. Management said the lower deposit rate paid was mainly about mix, especially growing operating accounts and non-interest-bearing balances, and said the firm has about $800 billion of excess between cash and securities over loans. On operating leverage, they said the first-half outperformance was driven by higher NII and strong fee-based businesses, while AI should help both revenue and internal productivity over time. Questions also covered loan growth, markets NII, and NIM; management said commercial and consumer loan growth remains constructive, markets NII should be flat to slightly down, and they still see a path to 2.30 NIM over time.