Bank of America reported total revenue of $31.6 billion in Q2 FY'26, up 15% year-over-year, driven by broad-based expansion across all operating business segments. Diluted EPS jumped 34% year-over-year to $1.21, while net income surged 27% to $9.1 billion. Primary drivers of bottom-line growth included a 9% rise in net interest income to $16.2 billion on an FTE basis, a 50% surge in investment banking fees to $2.1 billion, and a 33% increase in sales and trading revenue to $7.2 billion.
Note: Bank of America's FY'25 ended on December 31, 2025. Q2 FY'26 ended on June 30, 2026.
Bank of America returned $8.0 billion to shareholders in Q2 FY'26, comprising $6.0 billion in common stock repurchases and $2.0 billion in dividends. Supported by a CET1 ratio of 11.2% and an expanded Return on Tangible Common Equity of 17.0%, the firm announced a plan to increase its quarterly common dividend to $0.32 per share, reinforcing strong organic capital generation and balance sheet efficiency.
Below are key drivers of Bank of America's value that present opportunities for upside or downside to the current Trefis price estimate:
For additional details, select a division from the interactive Trefis split for Bank of America at the top of the page.
Bank of America provides a full spectrum of consumer banking, wealth management, corporate and investment banking, and trading services to individual consumers, small businesses, institutions, and corporations globally.
Consumer Banking generates the largest portion of stable deposit funding and retail income, while Global Markets and Wealth Management provide high-return fee streams.
Bank of America maintains one of the largest domestic deposit footprints with over $2.0 trillion in average deposits and 38.7 million consumer checking accounts, providing low-cost funding advantages and strong customer stickiness across nationwide branch and digital channels.
The Global Wealth and Investment Management division, powered by Merrill and Bank of America Private Bank, manages trillions in client balances, driving consistent fee-based revenue and high return on equity with minimal capital intensity.
The bank's institutional franchise combines deep corporate relationships with robust fixed income and equities trading capabilities, driving cross-selling synergies across international corporate and investment banking clients.
Rapid customer adoption of mobile banking platforms and digital assistant Erica is lowering branch transaction costs, enabling Bank of America to achieve strong operating leverage and sustain an efficiency ratio around 59%.
Large U.S. money-center banks are maintaining strong CET1 ratios well above regulatory requirements, allowing Bank of America to execute sizable share repurchases and consistent dividend increases while funding organic loan expansion.
Provision for credit losses stabilized at $1.4 billion in Q2 FY'26, reflecting steady consumer asset quality and resilient corporate debt performance in a supportive macroeconomic environment.
