Bank of America Corporation today reported second quarter 2026 net income of $9.1 billion, compared to $7.2 billion in the second quarter of 2025, up 27%. Diluted earnings per share were $1.21, compared to $0.90, up 34%. Revenue, net of interest expense, was $31.6 billion, up 15%, reflecting higher net interest income, sales and trading revenue, asset management fees and investment banking fees. Net interest income was $16.0 billion, up 9%, driven by higher net interest income related to Global Markets activity, higher loan and deposit balances, and fixed-rate asset repricing, partially offset by the impact of lower interest rates. Provision for credit losses was $1.4 billion, decreased from $1.6 billion in the second quarter of 2025 and relatively flat to the first quarter of 2026. Net charge-offs were $1.4 billion, decreased from $1.5 billion in the second quarter of 2025. Noninterest expense was $18.6 billion, up 8%, driven equally by revenue-related expenses and investments in people, brand and technology. The efficiency ratio improved 359 basis points to 59%, with operating leverage of 6.6%. Return on average common shareholders' equity was 12.7%, and return on average tangible common shareholders' equity was 17.0%. Return on average assets was 1.03%. Average deposit balances were $2.02 trillion, up more than 2%, marking the 12th consecutive quarter of sequential average growth. Average loans and leases were $1.22 trillion, up 8%, marking the 9th consecutive quarter of sequential average growth. Common equity tier 1 capital was $202 billion, up $1.9 billion from the first quarter of 2026, with a CET1 ratio of 11.2% under the standardised approach. The bank returned $8.0 billion to shareholders, comprising $2.0 billion in common stock dividends and $6.0 billion in common stock repurchases. Book value per common share rose 7% to $39.34; tangible book value per common share rose 7% to $29.37. CEO commentary Chair and chief executive officer Brian Moynihan said: "The team delivered one of our strongest quarters to date, with earnings per share up 34% year-over-year. Every business segment reported double digit net income growth and strong returns on equity. Revenue increased 15% from last year as we deepened relationships with existing clients and welcomed new ones. Against a healthy economic backdrop, resilient consumers and businesses are turning to Bank of America to spend, borrow and invest. It was also an exceptional quarter for our markets-facing businesses, with investment banking fees up 50% year-over-year. Near-term, pipelines remain strong, and commercial borrowing has picked up. Disciplined expense management, coupled with investments for growth, helped drive 6.6% operating leverage and a roughly 360 basis point improvement in our efficiency ratio from a year ago. Going forward, we remain focused on what we do best, delivering for clients at every stage of their financial lives." Consumer Banking Consumer Banking net income was $3.3 billion. Revenue was $11.3 billion, up 5%, driven primarily by higher net interest income. Average deposits were $957 billion, up 1%, and average loans and leases were $321 billion, up 1%. Combined credit and debit card spend was $266 billion, up 9%. Noninterest expense was $5.8 billion, up 4%, driven by investments in technology and brand, with the efficiency ratio at 51%. Global Wealth and Investment Management Global Wealth and Investment Management net income was $1.4 billion. Revenue was $6.9 billion, up 16%, driven by higher asset management fees, up 19% to $4.4 billion, reflecting higher market valuations and asset under management flows, as well as higher net interest income. Client balances were $4.9 trillion, up 12%, driven primarily by higher market valuations. Average loans and leases were $270 billion, up 14%. Global Banking Global Banking net income was $2.0 billion. Revenue was $6.2 billion, up 10%, driven primarily by higher investment banking fees, net interest income and treasury service charges. Total corporation investment banking fees, excluding self-led, were $2.1 billion, up 50%. Average deposits were $652 billion, up 8%, and average loans and leases were $413 billion, up 7%. Global Markets Global Markets net income was $2.6 billion ($2.7 billion excluding net debit valuation adjustment). Revenue was $8.0 billion, up 34%, driven by higher sales and trading revenue and investment banking fees. Equities revenue was up 70% to $3.6 billion, driven by increased client activity and strong trading performance in derivatives and cash. Fixed income, currencies and commodities revenue was up 9% to $3.5 billion, driven primarily by credit products and commodities. All Other All Other reported a net loss of $292 million, increased from a net loss of $23 million a year earlier. The corporation's effective tax rate for the quarter was 21.5%. Re-disseminated by The Asian Banker
