Bank of America tops estimates as earnings rise 34%

Investing.com -- Bank of America Corp (NYSE: BAC) shares are trading higher premarket on Tuesday after the company reported second-quarter earnings that exceeded analyst expectations.

Adjusted earnings per share of $1.21 compared to the consensus estimate of $1.12. Revenue reached $31.6 billion, beating the analyst estimate of $30.67 billion and up 15% from $27.4 billion in the same quarter last year.

The bank's net income rose 27% YoY to $9.1 billion from $7.2 billion in the second quarter of 2025. Net interest income increased 9% YoY to $16.0 billion, driven by higher net interest income related to Global Markets activity, higher loan and deposit balances, and fixed-rate asset repricing, partially offset by the impact of lower interest rates. Investment banking fees surged 50% YoY to $2.1 billion, while sales and trading revenue climbed 33% to $7.1 billion.

"The team delivered one of our strongest quarters to date, with earnings per share up 34% year-over-year," said Chair and CEO Brian Moynihan. "Every business segment reported double-digit net income growth and strong returns on equity."

Average deposit balances grew to $2.02 trillion, marking the 12th consecutive quarter of sequential average growth. Average loans and leases increased 8% to $1.22 trillion, representing the ninth consecutive quarter of sequential average growth. The provision for credit losses decreased to $1.4 billion from $1.6 billion in the second quarter of 2025.

Noninterest expense rose 8% to $18.6 billion, driven equally by revenue-related expenses and investments in people, brand and technology. The efficiency ratio improved 359 basis points to 59%, while operating leverage reached 6.6%.

You May Also Be Interested In

• Kalanick’s Atoms raises $1.7B in a16z-led round for industrial AI
• Alphabet nearly doubles AI infrastructure spending as Q2 tops estimates
• Bank of America Enhances EricaAssist with Generative AI to Help Employees Resolve Client Needs Faster