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FinanceBank of America Q2 revenue up 15% to $31.6B, net income rises 27% to $9.1B
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Bank of America reported strong Q2 2026 results, with revenue up 15% year-over-year to $31.6 billion and net income rising 27% to $9.1 billion. EPS increased 34% to $1.21. Net interest income grew 9% to $16.2 billion, driven by core lending and deposit franchises. Fee-based businesses performed exceptionally well, with investment banking fees surging 50% to over $2.1 billion and sales and trading revenue up 33% to $7.2 billion. Wealth management fees rose 18%. The company achieved operating leverage of 6.6% and improved its efficiency ratio to 59%. Return on tangible common equity reached 17%. Capital generation remained strong, with $8 billion returned to shareholders through dividends and buybacks. Asset quality remained stable. CEO Brian Moynihan highlighted broad-based organic growth across all business segments.
Source report
Source: Motley Fool Transcribing, The Motley Fool Read Time: 50 minutes
Date
Tuesday, July 14, 2026 at 8:30 a.m. ET
Call Participants
- Investor Relations: Lee McEntire
- Chair and Chief Executive Officer: Brian Moynihan
- Executive Vice President and Chief Financial Officer: Alastair Borthwick
Full Conference Call Transcript
Operator: It is now my pleasure to turn the meeting over to Lee McEntire, Bank of America. Please go ahead.
Lee McEntire: Thank you. Good morning, everyone, and thank you for joining us to talk through our second quarter results in what is a busy bank earnings day. As always, the earnings release and presentation are posted on the investor relations section of bankofamerica.com, and we'll reference those materials during the call.
Before we begin, a quick reminder that during the call, we may make forward-looking statements and refer to non-GAAP financial measures. These measures reflect management's current views and are subject to risks and uncertainties, which are outlined, along with the relevant GAAP reconciliations in our earnings materials and our SEC filings on our website.
With that, I'll turn the call over to Brian Moynihan, our CEO.
Brian Moynihan: Good morning, and thank you for joining us. Once again, our team delivered strong second quarter results, extending our momentum of the past several quarters.
Key Financial Highlights
- Revenue: Grew 15% year-over-year to $31.6 billion
- Net Income: Increased 27% from last year to $9.1 billion
- EPS: Rose 34% to $1.21 per share
- Operating Leverage: 6.6% for the quarter
- Efficiency Ratio: Improved to 59%
- Return on Tangible Common Equity: 17%
Our results show organic growth, operating leverage, and efficiency ratio improvement in every business segment. Along the bottom of slide two, you can see the progress against several of our key financial metrics for the firm.
In short, organic growth was broad-based and coupled with operating leverage, which translated into stronger returns on both equity and assets.
Business Segment Performance
Slide three shows the contributions and growth of each business segment. Every business segment contributed to our year-over-year growth:
- Average deposits and loan balances continued to grow, supported by healthy client engagement
- Revenue and net income increased in every business segment
- Each segment generated operating leverage
- Each segment improved its efficiency ratio
- Each segment demonstrated the benefits of its scale
Together, those results drive stronger returns across the company.
Earnings Highlights
Let me touch on a few earnings highlights from slide four, starting with revenue.
Revenue Growth
Revenue growth was broad-based, led by NII, investment banking, wealth management fees, and sales and trading revenue.
1. Net Interest Income
- On an FTE basis, NII was approximately $16.2 billion, up 9% over last year's second quarter
- Driven by the strength of our core lending and deposit-gathering franchises
- Includes our lending in our Global Markets business and the impact thereof
- Added benefit of ongoing repricing with lower-yielding assets and a repayment of higher-cost funding
2. Fee-Based Businesses
Delivered exceptional results, translating into 22% non-interest income growth. Wealth management, investment banking, and markets all benefit from healthy client activity in favorable capital markets conditions.
- Merrill and the Private Bank: Advisors drove 18% growth in investment brokerage fees
- Investment Banking Fees: Increased 50% year-over-year to more than $2.1 billion
- Sales and Trading: Generated $7.2 billion in revenue, up 33%
3. Cost Management
We manage cost while we continue to invest in our franchise, our brand, our people, our technology, and our AI-enabled productivity.
Asset Quality
Asset quality remains stable and consistent with the strong underwriting discipline that has characterized our company for many years.
Capital Returns
Capital generation and capital returns to investors remain strong. We've returned $8 billion to you through dividends and share repurchases this quarter.
We ended the quarter with common equity Tier 1 capital of nearly $202 billion and a common equity Tier 1 ratio of 11.2%.
The economic backdrop remains very constructive, as slide...
Source
Yahoo FinanceWestern
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Bank of America (BAC) Q2 2026 Earnings Call Transcript