Bank of America (0Q16.L) kicked off 2026 with a solid第一 quarter, delivering 7% year-over-year revenue growth to $30.3 billion and a 25% rise in earnings per share to about $1.11. Net interest income (NII) came in stronger than anticipated at $15.9 billion, up 9% YoY, supported by a balance sheet with growth in loans and deposits, as well as ongoing asset repricing benefits. The company achieved substantial operating leverage (290 basis points) and improved efficiency (61% vs. 63% a year earlier), translating to a ROTCE of 16%. Management highlighted broad-based strength across all segments, with every unit contributing to revenue, loan and deposit growth, and earnings, underscoring the durability of Bank of America’s diversified earnings model.
The quarter also featured balanced capital deployment: common dividends of $2 billion and $7.2 billion of share repurchases, with the CET1 ratio at 11.2% (down 14 bps due to capital returns and mix) and liquidity sources exceeding $960 billion. Notably, asset quality remained benign, with lower net charge-offs (NCOs) and continued reserve resilience; management noted no material credit surprises and a modest provision build offset by reductions in reserve needs from improving CRE and card assets.
Looking forward, management raised the 2026 NII growth guidance to 6–8% (versus prior expectations) and reaffirmed an objective of greater than 200 basis points of operating leverage for the year. The tax rate is expected to drift to roughly 20%. The firm stressed the potential for ongoing margin upside from balanced growth, funding optimization, and asset roll-off, even as the rate environment remains dynamic. The call also stressed ongoing AI-enabled productivity gains (Erica, CashPro, and GenAI initiatives) and a continued emphasis on cost discipline and scalable growth. The near-term outlook remains constructive given resilient consumer activity, broad-based fee momentum, and a diversified revenue mix, albeit with macro- and regulatory-driven headwinds to monitor.