Bank of America (NYSE:BAC) reported first-quarter results on Wednesday that exceeded analyst forecasts for both earnings and revenue.
Adjusted earnings per share came in at $1.11, ahead of the $1.01 consensus estimate. Revenue totaled $30.3 billion, topping expectations of $29.92 billion and rising 7% from $28.2 billion in the same period a year earlier.
Net income increased 17% year-on-year to $8.6 billion, up from $7.4 billion. Growth was driven by a 9% rise in net interest income to $15.7 billion, alongside double-digit increases in trading revenue, investment banking fees and asset management fees. Higher deposit and loan balances, repricing of fixed-rate assets and stronger activity in Global Markets supported net interest income, although partially offset by lower interest rates.
Shares gained 1.2% in premarket trading following the release.
“Earnings per share rose 25% year-over-year, starting 2026 with strong momentum,” said Chair and CEO Brian Moynihan. “Revenue growth of 7% year-over-year included net interest income that was better than we expected, up 9%, as well as double-digit growth in sales and trading revenue, investment banking fees and asset management fees.”
The bank’s provision for credit losses declined to $1.3 billion from $1.5 billion in the first quarter of 2025, while net charge-offs fell to $1.4 billion from $1.5 billion. Noninterest expenses rose 4% to $18.5 billion, reflecting higher revenue-related costs and continued investment in personnel and technology. The efficiency ratio improved by roughly 170 basis points to 61%, with operating leverage reaching 2.9%.
Average deposit balances climbed 3% to $2.02 trillion, marking the 11th straight quarter of sequential growth. Average loans and leases rose 9% to $1.19 trillion, with expansion across all business segments. The bank returned $9.3 billion to shareholders during the quarter, including about $2.0 billion in dividends and $7.2 billion through share buybacks.