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.