TLDR
- BOA posts strong Q4 earnings as consumer banking and wealth units drive growth.
- Digital engagement soars, pushing deposits, loans, and card spending higher.
- Wealth management fees climb on rising markets and expanding client balances.
- Bank-wide revenue jumps as credit costs ease and efficiency meaningfully improves.
- Despite a slight stock dip, BOA enters the new year with strong earnings momentum.
Bank of America (BAC) shares reported higher fourth-quarter earnings as strong momentum across consumer banking and wealth management supported broad growth. The stock closed at $54.54, down 1.18%, after it pulled back from early highs ahead of the results. The bank posted an 18% rise in diluted earnings per share to $0.98 as revenue increased and credit costs eased.
Bank of America Corporation, BAC
Consumer Banking Strengthens Core Performance
Bank of America recorded solid gains in its consumer banking unit as revenue reached $11.2 billion during the quarter. The segment delivered $3.3 billion in net income, and average deposits rose to $945 billion as digital activity expanded. The bank also reported average loans of $323 billion as small business lending grew steadily.
The company added new checking accounts at a consistent pace as it completed 28 straight quarters of net growth. Total checking accounts reached 38.4 million, and primary accounts represented the bulk of the portfolio. Payment volumes reached $1.2 trillion while combined card spending climbed 6%.
📄 #BankofAmerica Q4 & FY25 #EarningsReport Summary:
— EarningsTime (@Earnings_Time) January 14, 2026
Digital engagement remained central to the segment’s performance as customers logged 4.3 billion digital sessions. The bank said 69% of total sales occurred through digital channels, and adoption continued to rise. Consumer investment assets increased 16% to $599 billion and supported broader balance growth.
Wealth Management Drives Higher Fee Revenue
The Global Wealth and Investment Management unit generated $1.4 billion in net income as revenue climbed 10%. The increase reflected higher market valuations and stronger asset management fees, which rose 13% to $4.1 billion. Client balances increased 12% to $4.8 trillion due to stronger flows and broad market strength.
Average loans in the unit rose 12% to $257 billion as activity expanded across lending categories. The bank highlighted steady demand for credit products as financial conditions improved. Asset management flows supported higher fee income and helped lift overall segment performance.
The division remained a key driver of the quarter as markets boosted valuations and client allocations. The company benefited from improved sentiment and broader financial planning activity. Wealth teams continued to add new balances and maintain steady long-term growth.
Bank-Wide Results Show Higher Earnings and Improved Efficiency
Bank of America reported net income of $7.6 billion compared with $6.8 billion a year earlier. Revenue increased 7% to $28.4 billion as higher net interest income combined with gains in sales and trading. Provision for credit losses fell to $1.3 billion as net charge-offs decreased from prior periods.
Noninterest expenses rose 4% to $17.4 billion as the bank invested in technology and brand initiatives. The efficiency ratio improved by 194 basis points to 61% as revenue outpaced costs. The company also noted lower assessment charges and stable expense trends compared with the prior quarter.
Return on average common equity reached 10.4%, and return on average tangible common equity reached 14%. The bank maintained a return on average assets of 0.89% as balance growth remained steady. The results advanced Bank of America’s position heading into the new year as core operations supported stronger earnings momentum.
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