Bank of America Corp. (NYSE:BAC) reported fourth-quarter net income of $7.65 billion, or 98 cents per share, as the nation’s second-largest lender successfully harnessed a rebound in investment banking and resilient consumer spending to overcome a high bar set by analysts.
The results, released Wednesday, beat the 96-cent average estimate from analysts surveyed by Zacks Investment Research.
Revenue for the period reached $46.88 billion, while revenue net of interest expense climbed to $28.37 billion, well ahead of the $27.49 billion projected by the Street.
The performance was anchored by Net Interest Income (NII), which reached the upper end of management’s guidance at approximately $15.6 billion.
This growth was driven by a 13% surge in commercial loan demand and the ongoing benefit of fixed-rate assets repricing at higher yields.
The bank’s market-facing businesses provided a significant tailwind as global dealmaking activity accelerated toward the end of 2025.
Investment banking fees rose by more than 40% year-over-year, while sales and trading revenue saw a high single-digit percentage jump, fueled by volatility in the fixed-income and equity markets.
Despite the strong headline numbers, the report also reflected the "policy risk premium" currently weighing on the banking sector.
Bank of America’s provision for credit losses remained a point of focus as the industry prepares for a proposed 10% cap on credit card interest rates set to take effect later this month.
While net charge-offs remained manageable, management used the earnings call to highlight the high credit quality of their borrower base—many of whom pay balances in full—as a primary defense against upcoming regulatory shifts.