Bank of America Corporation

Bank of America reported second-quarter revenue of $31.6 billion, up 15% year over year. Net income was $9.1 billion, up 27%, and EPS was $1.21, up 34%. On an FTE basis, NII was approximately $16.2 billion, up 9% year over year and up $253 million sequentially. The efficiency ratio improved to 59%, operating leverage was 6.6%, 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%. Provision expense and net charge-offs were both about $1.4 billion. Management raised full-year 2026 NII guidance to the upper end of the 6%-8% range and lowered full-year operating leverage expectations to 300-400 basis points from prior commentary above 200 basis points, citing 450 basis points in the first half already achieved.

Brian Moynihan emphasized that the quarter showed broad-based organic growth, operating leverage, and efficiency improvements across every segment. He highlighted strong client activity, durable U.S. consumer spending, and the company’s ability to translate revenue growth into stronger returns. He was upbeat on AI, saying more than 300 AI use cases were approved and that the tools are already helping employees improve productivity and client service.

Alastair Borthwick focused on the balance sheet, deposit mix, loan growth, and margin/NII trajectory. He said average deposits were $2.02 trillion, average loans and leases were $1.2 trillion, CET1 was stable at 11.2%, and RWA was $1.8 trillion. He noted NII of about $16.2 billion, net interest yield of 2.08%, and said the company expects full-year 2026 NII growth at the upper end of 6%-8%, with modest second-half deposit growth, continued loan growth, and fixed-rate repricing. He also said expenses were $18.6 billion, up roughly $100 million sequentially and $1.4 billion year over year, and that full-year operating leverage is now expected at 300-400 basis points.

Analysts focused on deposit pricing, NII conservatism, second-half operating leverage, and whether AI could change the expense/revenue mix. Management said the NII outlook reflects tougher second-half comps rather than a weak underlying trend, and that deposit mix—especially non-interest-bearing balances and operating accounts—is supporting results. On operating leverage, they said the first half’s 450 basis points is unusually strong, but the company still expects a strong second half and sees AI as a longer-term productivity driver rather than an immediate expense cut. They also said markets NII is likely flattish to slightly down, while most NII growth should come from Global Banking.