Bank of America CEO Brian Moynihan discusses financial results at the World Economic Forum in Davos, Switzerland, on Jan. 20, 2026.
Oscar Molina | CNBC
Bank of America, the second-largest bank in the United States, recently announced a strong performance for the first quarter of 2026, surpassing market expectations on both earnings and revenues. This achievement is underpinned by robust activity in equities sales and trading, indicating renewed vigor in the banking sector motivated by current market dynamics and investor sentiment.
The earnings release on Wednesday revealed that Bank of America’s net income climbed 17% to $8.6 billion, translating to earnings per share (EPS) of $1.11—its highest in nearly two decades. With all core areas experiencing growth, the results signal not only a robust internal performance but also a positive outlook for the broader financial landscape.
- Earnings per share: $1.11, surpassing the LSEG estimate of $1.01
- Revenue: $30.43 billion, compared to the projected $29.93 billion
Driving these results were increases in net interest income, trading revenues, and service fees from investment banking and asset management. Notably, revenue from equities trading skyrocketed by 30% to $2.83 billion, marking one of the bank’s most successful quarters in 15 years amidst a climate of geopolitical uncertainty that is stirring markets. Additionally, the investment banking division’s revenue surged by 21% to $1.8 billion, illustrating widespread demand for financial services in turbulent times.
Moreover, net interest income improved by 9% year-over-year to reach $15.9 billion, reflecting higher loan balances, deposit growth, and favorable market activities. “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,” stated Brian Moynihan, the CEO of Bank of America, highlighting confidence in continued economic growth.
The improved net-charge-off ratio—down to 0.48%—demonstrates a proactive management of loan defaults, while the consumer banking and global wealth management sectors each benefited from more than a 20% increase in revenue. Additionally, return on tangible common equity, a critical profitability indicator, rose to 16%, showcasing a substantial increase of over 200 basis points.
A recent correction noted that the earlier guidance for net interest income growth this year has been correctly positioned at 5% to 7%, rather than previous estimates, aligning expectations with robust market performance.
Editorial content by Harper Eastwood
