Bank of America Corp. (NYSE:BAC) shares moved higher in premarket trading on Tuesday after the banking group reported second-quarter results that exceeded Wall Street expectations, supported by strong growth in investment banking, trading and net interest income.
The lender posted higher earnings and revenue as business activity remained robust across its major operating divisions.
Earnings and Revenue Surpass Expectations
Bank of America reported adjusted earnings of $1.21 per share for the second quarter, ahead of the consensus analyst estimate of $1.12.
Revenue increased 15% year over year to $31.6 billion, beating market expectations of $30.67 billion and improving from $27.4 billion in the same period last year.
Net income rose 27% to $9.1 billion, compared with $7.2 billion in the second quarter of 2025.
Investment Banking and Trading Drive Growth
Net interest income climbed 9% to $16.0 billion, benefiting from stronger activity within Global Markets, higher average loan and deposit balances, and the repricing of fixed-rate assets. These gains were partly offset by the impact of lower interest rates.
Investment banking fees surged 50% year over year to $2.1 billion, while sales and trading revenue advanced 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.”
Loan and Deposit Growth Continues
Average deposits reached $2.02 trillion, marking the twelfth consecutive quarter of sequential growth.
Average loans and leases increased 8% to $1.22 trillion, extending their growth streak to nine consecutive quarters.
Meanwhile, the provision for credit losses declined to $1.4 billion from $1.6 billion a year earlier, reflecting continued strength in the bank’s credit portfolio.
Efficiency Improves Despite Higher Investment
Noninterest expenses rose 8% to $18.6 billion as Bank of America continued investing in its workforce, technology and brand while also incurring higher revenue-related costs.
Despite the increase in spending, the bank improved its efficiency ratio by 359 basis points to 59%, while operating leverage reached 6.6%, highlighting continued improvements in profitability and cost management.