Bank of America (BAC) Q3 2026 Earnings Call: NII Rises 8%, 2027 Outlook Strengthens
Source Tradingkey
Key Takeaways
- Bank of America reported Q3 2026 net income of $6.9 billion and diluted EPS of $0.91. Excluding a $1.2 billion non-tax-deductible regulatory settlement charge, adjusted net income was $8.1 billion, or approximately $1.08 per share.
- Revenue rose about 3% year over year to approximately $30 billion. Net interest income increased 8% to $16.6 billion on an FTE basis, supported by loan and deposit growth and fixed-rate asset repricing.
- Quarter-end loans increased $34 billion sequentially to $1.25 trillion, while deposits rose $14 billion to remain above $2 trillion. Average loans grew approximately 6% year over year.
- Credit trends improved. Provision expense was approximately $1.3 billion, the net charge-off ratio fell to 44 basis points, and card losses and delinquencies declined.
- Management continues to expect approximately 8% full-year NII growth in 2026 and now projects 2027 NII growth of 8% or more, assuming modest loan and deposit growth, continued asset repricing and three 25-basis-point rate increases through June 2027.
- Wealth Management delivered strong growth, but weaker FICC activity and lower investment banking fees weighed on Global Markets and Global Banking results.
Core Financial Data
| Metric | Q3 2026 result | Change or context |
|---|---|---|
| Revenue | Approximately $30 billion | Up about 3% year over year |
| Net income | $6.9 billion | After the regulatory settlement charge |
| Diluted EPS | $0.91 | Settlement reduced EPS by $0.17 |
| Adjusted net income | $8.1 billion | Excludes the $1.2 billion settlement charge |
| Adjusted EPS | Approximately $1.08 | Up from the prior year |
| NII, FTE basis | $16.6 billion | Up 8% year over year and $450 million from Q2 |
| Net interest yield | 2.16% | Up 15 basis points year over year and 8 basis points sequentially |
| Reported expense | $19.7 billion | Includes the settlement charge |
| Adjusted expense | More than $18.5 billion | Down nearly $100 million from Q2; up slightly less than 7% year over year |
| Provision expense | Approximately $1.3 billion | Lower than Q2 |
| Net charge-off ratio | 44 basis points | Improved sequentially |
| Quarter-end loans | $1.25 trillion | Up $34 billion from Q2 |
| Quarter-end deposits | Above $2 trillion | Up $14 billion from Q2 and $31 billion year over year |
| CET1 ratio | 10.9% | Down about 35 basis points from Q2 |
| Global liquidity sources | $914 billion | Remained strong |
| Capital returned | $8.3 billion | Dividends and share repurchases |
Business and Operating Performance
Consumer Banking
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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