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%; return on tangible common equity was 17%. NII on an FTE basis was approximately $16.2 billion, up $253 million sequentially and $1.3 billion, or 9%, year over year. 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 about $1.4 billion. The firm returned $8 billion to shareholders and ended with CET1 capital of nearly $202 billion and a CET1 ratio of 11.2%. Looking ahead, management expects full-year 2026 NII growth at the upper end of the 6%-8% range and full-year operating leverage of 300-400 basis points.

Brian Moynihan framed the quarter as another proof point for the company’s diversified model, emphasizing that every business segment contributed to growth and operating leverage. He highlighted broad-based client activity, strong consumer spending, and continued investment in AI-enabled productivity, saying the firm is using AI to improve client service, efficiency, and consistency. His tone was confident and constructive, with repeated emphasis on long-term earnings power, scale, and responsible growth.

Alastair Borthwick focused on balance sheet strength, NII momentum, and margin optimization. He said ending assets were steady at $3.5 trillion, CET1 stayed at 11.2%, RWA rose to $1.8 trillion, and the firm still has about $800 billion of excess between cash/securities and loans. He also noted NII of about $16.2 billion, net interest yield of 2.08%, provision and charge-offs of about $1.4 billion each, and non-interest expense of about $18.6 billion. On capital allocation, he pointed to $8 billion returned this quarter and said the company expects more balance sheet optimization in the second half through paydown of repo and institutional CDs.

Analysts pressed management on whether the NII guide and operating leverage outlook were conservative, especially with higher rates and strong first-half momentum. Borthwick said the second-half comparison is simply tougher, that full-year NII is expected to be at the top end of the 6%-8% range, and that operating leverage is now guided to 300-400 basis points after 450 basis points in the first half. Questions also focused on deposit pricing, balance sheet optimization, AI’s impact on productivity and spending, and commercial loan growth; management said deposit mix is supporting pricing, excess liquidity gives them flexibility, AI should help both revenue and efficiency over time, and loan growth remains broad-based across commercial and consumer.