Back
Finance

Bank of America Reports First-Quarter 2026 Financial Results

Generated on: Last updated: 2 sources
View source

Bank of America Reports Strong First Quarter 2026 Results

Bank of America reported its financial results for the first quarter of 2026 on January 20, 2026. The bank's earnings and revenue exceeded analyst estimates, with net income rising 17% year-over-year. The results were announced during the World Economic Forum in Davos, Switzerland, where CEO Brian Moynihan discussed them in an appearance on CNBC.

"We remain watchful of evolving risks. However, we saw healthy client activity, including solid consumer spending and stable asset quality, indicating a resilient American economy."
— Brian Moynihan, Chairman and CEO of Bank of America

Financial Highlights

Bank of America's first-quarter performance was strong across key metrics, surpassing analyst expectations.

  • Earnings Per Share (EPS): $1.11, compared to an LSEG analyst estimate of $1.01. The bank stated this was its highest EPS in nearly two decades.
  • Revenue: $30.43 billion, compared to an estimate of $29.93 billion. This represents a 7.2% increase year-over-year.
  • Net Income: $8.6 billion, a 17% increase from the same period a year ago.
  • Net Interest Income: $15.9 billion, a 9% increase. This exceeded the bank's previously stated annual guidance for growth between 5% and 7%.
  • Return on Tangible Common Equity (ROTCE): 16%, an improvement of more than 200 basis points.
  • Net-Charge-Off Ratio: 0.48%, an improvement of 6 basis points.

Business Segment Performance

Performance varied across the bank's major divisions, with several reporting significant revenue gains.

  • Global Markets: Equities trading revenue increased 30% to $2.83 billion. The bank stated its overall trading operations had their best quarter in 15 years, attributing the performance in part to market volatility. Fixed-income trading revenue rose slightly but was reported by some sources to have fallen short of analyst estimates.
  • Investment Banking: Revenue increased 21% to $1.8 billion, driven by a 45% rise in merger and acquisition advisory fees.
  • Consumer Banking: Revenue increased more than 20% year-over-year. Combined debit and credit card spending by U.S. customers rose 7%. The rate of credit card delinquencies over 90 days declined to 1.30% from 1.34%.
  • Global Wealth Management: Revenue increased more than 20%.

Context and Market Reaction

Bank of America is the second-largest lender in the United States. The bank's stock rose approximately 1% in pre-market trading following the earnings release.

The results were reported alongside similar first-quarter profit increases from other major U.S. banks, including JPMorgan Chase, Wells Fargo, and Citigroup, which also exceeded analyst expectations. Collectively, these four banks reported combined profits of $36.12 billion, a 17% increase from the previous year.