Bank of America CFO says substantial rate cuts would impact NII

Investing.com -- Bank of America (NYSE: BAC) CFO Alastair Borthwick said Monday that a substantial rate cut environment over the next four months would change the bank’s net interest income (NII).

Speaking at the Barclays Financial Conference, Borthwick maintained the bank’s previous NII guidance, stating they are still on track for fourth-quarter 2025 NII of $15.5 billion to $15.7 billion. He expects NII to rise 6-7% for the year, in line with earlier projections.

The CFO noted that the bank’s markets unit is performing well, up mid-single digits year-over-year, and is on track for its 14th consecutive quarter of growth in markets revenue. He added that the unit is doing more loans with large investors.

Regarding consumer activity, Borthwick said consumers are "resilient" and "doing well," with consumer spending still up and net charge-offs down.

Borthwick expressed that management is not satisfied about the bank’s valuation gap and wants to discuss growth plans at an upcoming investor day. He mentioned the bank is looking to deploy excess capital into loans.

Looking ahead, Borthwick indicated that 2026 NII is expected to grow at a rate similar to this year.

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