TLDR
- Bank of America posted Q4 earnings of $0.98 per share, surpassing analyst predictions of $0.96 per share
- Consumer card spending grew 6% while credit card delinquencies fell from 1.35% to 1.27%
- Fourth quarter revenue totaled $28.37 billion, beating Wall Street forecasts by 2.8%
- Net interest income increased 10% to $15.8 billion with a 2.1% net interest margin
- Full-year 2025 profit reached $30.51 billion, marking a 13% year-over-year increase
Bank of America delivered fourth quarter results that exceeded expectations. The bank earned $7.6 billion in the final quarter of 2025.
$BAC (Bank of America) #earnings are out: pic.twitter.com/dphFxbaiu7
— The Earnings Correspondent (@earnings_guy) January 14, 2026
Earnings per share came in at $0.98. Wall Street had projected $0.96.
The numbers tell a straightforward story about consumer health. Debit and credit card spending rose 6% compared to last year’s fourth quarter.
Bank of America Corporation, BAC
CFO Alastair Borthwick said the data shows consumers remain in great shape. Multiple metrics support that assessment.
Credit card health improved during the period. Delinquencies over 90 days dropped to 1.27% from 1.35% a year earlier.
Fourth quarter revenue hit $28.37 billion. That topped analyst estimates by a decent margin.
Net Interest Income Drives Revenue Growth
Net interest income climbed 10% to $15.8 billion. This key profitability measure exceeded the $15.68 billion analysts expected.
The bank’s net interest margin reached 2.1%. Forecasts had called for 2%.
Credit loss provisions totaled $1.3 billion for the quarter. That’s down from the previous year’s level.
The efficiency ratio came in at 61.5% versus the 62.7% analysts anticipated. Lower numbers indicate better operational efficiency.
Trading and Banking Fees Rise
The markets division generated $4.52 billion in sales and trading revenue. That represents a 10% increase from last year.
Investment banking fees grew to $1.67 billion during the quarter. Both divisions contributed to the overall earnings beat.
Tangible book value per share stood at $28.73. This matched analyst estimates and grew 7.5% year-over-year.
For the full year 2025, Bank of America earned $30.51 billion. That’s up 13% from 2024’s profit.
The bank serves roughly 67 million consumer and small business customers. Revenue has grown at a 5.7% annual rate over the past five years.
JPMorgan reported similar consumer trends earlier this week. CEO Jamie Dimon noted healthy spending but pointed to geopolitical concerns.
President Trump recently floated a proposal to cap credit card interest rates at 10% for one year. Industry groups worry this could limit credit access.
Borthwick avoided specific commentary on the rate cap proposal. He noted the bank supports the administration’s affordability goals.
The stock traded up 1.3% to $55.06 immediately following the earnings release. Investors responded positively to the revenue and earnings beats.
Net interest income made up 53% of total revenue over the last five years. This shows a balanced mix between lending and fee-based activities.
Consensus estimates project tangible book value per share will reach $30.55 over the next 12 months. That would represent 6.3% growth from current levels.
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