Bank of America delivered a solid first quarter of 2026 with revenue of approximately $30.3 billion, up 7% year-over-year, and earnings per share of $1.11 (diluted $1.11). Management emphasized the breadth of the earnings mix, noting that every business segment contributed to both revenue and earnings growth as well as higher average deposits and lending balances. Net interest income (NII) came in at $15.9 billion on an FTE basis, up 9% year-over-year, driven by growth in loans and deposits, the repricing benefits from fixed-rate assets, and stronger client activity in global markets. The company achieved 290 basis points of operating leverage, improving the efficiency ratio to 61% and delivering ROTCE of 16%. Fourth-quarter headcount reductions continued, with roughly 1,070–1,070 fewer employees year-over-year, while investments in revenue-generating capabilities and technology continued to support growth. Notably, BAC raised its full-year NII growth guidance to 6–8% for 2026, signaling confidence in a sustained NII tailwind even as the rate path remains uncertain.
The balance sheet remained robust, with total assets near $3.5 trillion and deposits above $2 trillion. The CET1 ratio stood at 11.2%, down 14 basis points quarter over quarter due to capital returns and balance sheet growth, but well above regulatory requirements. Credit quality remained benign, with provision expense of about $1.3 billion and net charge-offs around $1.4 billion (0.48% of loans). Management highlighted ongoing discipline in expense growth, supported by digitization and AI-driven process improvements, which helped keep expense growth at 4% year over year while delivering meaningful operating leverage. Looking ahead, BAC remains well-positioned across its diversified businesses (Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets) to navigate a range of macro scenarios, underpinned by resilient consumer spending, strong client engagement, and a disciplined capital deployment framework that includes dividends and buybacks.