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%. NII on an FTE basis was approximately $16.2 billion, up $1.3 billion or 9% year over year; net interest yield was 2.08%, up 14 basis points year over year. Non-interest expense was about $18.6 billion, up roughly $100 million sequentially and $1.4 billion from a year ago. Operating leverage was 6.6%, the efficiency ratio was 59%, and ROTCE was 17%. CET1 capital ended at nearly $202 billion and the CET1 ratio was 11.2%. The company returned $8 billion to shareholders this quarter. For full-year 2026, management expects NII growth at the upper end of the 6%-8% range and operating leverage in the range of 300-400 basis points.

Brian Moynihan framed the quarter as evidence of broad-based organic growth, with every business segment contributing and improving its efficiency ratio. He emphasized that the franchise is benefiting from scale, strong client activity, and disciplined execution, while also investing in technology and AI to boost productivity and client service. His tone was upbeat and confident, and he said the company remains well-positioned to deliver responsible growth and attractive returns.

Alastair Borthwick focused on balance sheet strength, deposit discipline, and the mechanics behind the improved outlook. He noted average deposits of $2.02 trillion, loans and leases of $1.2 trillion, CET1 at 11.2%, provision expense of about $1.4 billion, net charge-offs of $1.4 billion, and non-interest expense of about $18.6 billion. He said full-year 2026 NII growth should land at the upper end of 6%-8%, helped by modest loan and deposit growth, fixed-rate repricing, and balance-sheet optimization, and he lifted full-year operating leverage guidance to 300-400 basis points after 450 basis points in the first half.

Analysts focused on deposit pricing, the durability of operating leverage, the NII outlook, and whether AI or higher spending could change the expense trajectory. Management said deposit costs were mainly a mix story, with growth in non-interest-bearing balances and operating accounts, and reiterated that the NII guide already assumes modest deposit growth, continued loan growth, and a current forward curve that includes one 25 bp hike in September. On operating leverage, management said the first half outperformance came from both higher NII and strong fee businesses, and that AI should support future growth, efficiency, risk management, and resiliency rather than forcing a major near-term spending step-up.