Bank of America reported a strong first quarter of 2026 with revenue of $30.3 billion, up 7% year over year, underpinned by a 9% rise in net interest income (NII) to $15.9 billion and an 16% ROTCE. The company delivered 290 basis points of operating leverage and improved the efficiency ratio to 61%, signaling durable earnings power from a diversified earnings mix. All segments contributed to revenue and earnings growth, deposits and loans advanced, and capital generation remained robust with CET1 above regulatory requirements. Management highlighted ongoing investments in revenue-generating capabilities and productivity improvements, including AI-driven process enhancements, as central to sustaining growth while containing costs.
Looking forward, Bank of America raised its 2026 NII growth guidance to 6-8% and maintained a more than 200 basis points of expected annual operating leverage over the medium term. The bank also signaled a constructive view on Basel III Endgame and G-SIB frameworks, expecting potential capital relief as rules finalize, while continuing to return capital through dividends and buybacks. Management cautioned that macro risks—such as geopolitical tensions and inflation—remain real but noted a resilient U.S. consumer, healthy credit metrics, and solid client activity across consumer, wealth, corporate, and markets franchises. The prudent balance-sheet stance, combined with a disciplined cost base and AI-enabled productivity improvements, positions Bank of America to navigate a range of macro scenarios with a mid-teens ROTCE trajectory and sustainable ROIC expansion.
Key Performance Indicators
Revenue
Decreasing
30.27B
QoQ: -35.58% | YoY: -37.62%
Gross Profit
Increasing
28.94B
95.58% margin
QoQ: 11.78% | YoY: 21.22%
Operating Income
Increasing
10.40B
QoQ: 28.19% | YoY: 37.62%
Net Income
Increasing
8.58B
QoQ: 16.06% | YoY: 24.46%
EPS
Increasing
1.12
QoQ: 23.08% | YoY: 34.94%
Revenue Trend
Margin Analysis
Financial Highlights
Financial highlights and what they imply:
- Revenue: $30.272B, up 7% YoY; QoQ not disclosed in the data provided. Indicates broad-based top-line strength across net interest income and fee-based businesses.
- Net Interest Income (NII, fully taxable equivalent): $15.9B, +9% YoY; QoQ flat. NII strength driven by loan and deposit growth, fixed-rate asset repricing, and higher client activity in global markets.
- Net interest yield: 2.07%, +8 bps YoY. Reflects balance-sheet discipline and repricing advantages; sensitivity to rate moves remains a key variable.
- Operating Expenses: $18.5B, +4% YoY. Driving 290 bps of operating leverage; increases mainly from revenue-related incentives and higher market-related expenses, offset by productivity gains and AI investments.
- Operating Margin / ROTCE: Operating leverage 290 bps; ROTCE 16% (up from prior-year levels). Indicates durable earnings power from diversified earnings mix.
- Net Income: $8.584B, +~24.5% YoY; +16.1% QoQ (where applicable).
- Earnings per Share (GAAP/GAAP-diluted): $1.12 / $1.11 respectively; weighted shares ~7.256B.
- Provision for credit losses: ~$1.3B; NCOs ~$1.4B with NCO rate 48 bps; both down YoY and modestly up from Q4 due to seasonal card portfolio effects.
- Deposits: Avg deposits up ~$59B YoY (+3%), with >$2T in deposits; funding cost on deposits ~1.47%, indicating a favorable low-cost funding mix.
- Capital and liquidity: CET1 ratio 11.2% (down 14 bps QoQ) with continued liquidity greater than $960B; capital returns included $2B in common dividends and $7.2B of share repurchases in the quarter.
- Loan growth: Total loans up ~9% YoY, with Consumer loans +4% and commercial/WE growth broad-based; cre aims to balance growth with credit quality discipline.
- Global Banking and Markets: IB fees +21% YoY to $1.8B; Global Markets ex-DVA revenues ~$7B, +7% YoY; Equities up ~30% YoY reflecting client activity and derivatives strength.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
30.27B
-37.62%
-35.58%
Gross Profit
28.94B
21.22%
11.78%
Operating Income
10.40B
37.62%
28.19%
Net Income
8.58B
24.46%
16.06%
EPS
1.12
34.94%
23.08%
Key Financial Ratios
Management Insights Available for Members
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