How did Bank of America perform in Q4 2025 compared with a year earlier?

Net income rose to $7.6 billion from $6.8 billion, and diluted EPS increased 18% to $0.98. Revenue grew 7% to $28.4 billion, driven mainly by higher net interest income and fee and trading revenue, while noninterest expense rose 4%.

What drove the increase in net interest income?

NII increased 10% to $15.8 billion, reflecting higher NII tied to Global Markets activity, repricing of fixed-rate assets, and growth in deposit and loan balances. Lower interest rates partially offset these gains.

Is credit quality deteriorating?

No. Net charge-offs fell to $1.3 billion from $1.5 billion a year earlier, and the net charge-off ratio improved to 0.44%. Nonperforming loans rose to $5.8 billion from $5.3 billion in Q3 2025 but were below the $6.0 billion reported a year earlier. The allowance for loan and lease losses was 1.12% of loans.

What is the 2026 outlook?

Management expects about 200 bps of operating leverage in 2026, FY26 NII (FTE) growth of 5% to 7%, noninterest expense up about 4% year over year in Q1 26, other income of $100 million to $300 million per quarter, and an effective tax rate of about 20%.

Why did the results and prior periods change?

Effective Q4 2025, the bank changed its accounting for certain tax-related equity investments, which it applied retrospectively. This nets tax credits against investment expense and reclassifies line items. Prior-period figures were revised for comparability, and regulatory capital ratios were not restated.

BAC 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed January 14, 2026. Cited figures are marked; the original filing is the authoritative source.

Bank of America reported fourth-quarter 2025 net income of $7.6 billion^a, or $0.98 per diluted share, up 18% year over year from $0.83, on revenue of $28.4 billion, up 7%.

Full-year 2025 net income was $30.5 billion^b, or $3.81 per diluted share, up 19% from $3.19. Growth was driven by net interest income of $15.8 billion, up 10% year over year, reflecting Global Markets activity, fixed-rate asset repricing and higher deposit and loan balances, along with higher asset management fees and sales and trading revenue. Noninterest expense rose 4% to $17.4 billion, and the efficiency ratio improved to 61%.

Credit quality was stable, with net charge-offs of $1.3 billion^c (0.44% ratio) and a provision of $1.3 billion, flat sequentially. The balance sheet remained strong. Average deposits reached $2.01 trillion, and average loans grew 8% to $1.17 trillion.

The CET1 ratio (Standardized) was 11.4%, down from 11.6% in the prior quarter, and the company returned $8.4 billion^d to shareholders through dividends and buybacks. Book value per share rose 8% to $38.44 and tangible book value per share rose 9% to $28.73. Management guided to roughly 200 bps of operating leverage in 2026, FY26 NII (FTE) growth of 5% to 7%, and an effective tax rate of about 20%.

Results reflect an accounting method change for certain tax-related equity investments, applied retrospectively. Prior periods were revised, and the 8-K furnished on January 6, 2026 provides further detail. Investors should note that the change affects presentation and the CET1 ratio by about 12 bps, and that Global Markets results were volatile, with the quarter's efficiency ratio at 74%.

02—Key points

Key Highlights

Q4 2025 net income of $7.6B ($0.98 diluted EPS, up 18% YoY); full-year net income of $30.5B ($3.81 EPS, up 19%)
Revenue of $28.4B, up 7% YoY, led by NII of $15.8B (up 10%) and higher asset management fees and sales and trading revenue
Efficiency ratio improved 194 bps to 61%; noninterest expense up 4% to $17.4B
Credit quality stable: net charge-offs of $1.3B (0.44% ratio, down 3 bps QoQ); provision flat at $1.3B
Strong balance sheet: average deposits of $2.01T (10th straight quarter of sequential growth), average loans up 8% to $1.17T, CET1 ratio 11.4%
Returned $8.4B to shareholders in Q4 ($2.1B dividends, $6.3B buybacks); book value per share up 8% to $38.44
2026 outlook: ~200 bps operating leverage, FY26 NII (FTE) growth of 5%-7%, ~20% effective tax rate

03—Questions

Frequently Asked Questions

How did Bank of America perform in Q4 2025 compared with a year earlier?
Net income rose to $7.6 billion from $6.8 billion, and diluted EPS increased 18% to $0.98. Revenue grew 7% to $28.4 billion, driven mainly by higher net interest income and fee and trading revenue, while noninterest expense rose 4%.
What drove the increase in net interest income?
NII increased 10% to $15.8 billion, reflecting higher NII tied to Global Markets activity, repricing of fixed-rate assets, and growth in deposit and loan balances. Lower interest rates partially offset these gains.
Is credit quality deteriorating?
No. Net charge-offs fell to $1.3 billion from $1.5 billion a year earlier, and the net charge-off ratio improved to 0.44%. Nonperforming loans rose to $5.8 billion from $5.3 billion in Q3 2025 but were below the $6.0 billion reported a year earlier. The allowance for loan and lease losses was 1.12% of loans.
What is the 2026 outlook?
Management expects about 200 bps of operating leverage in 2026, FY26 NII (FTE) growth of 5% to 7%, noninterest expense up about 4% year over year in Q1 26, other income of $100 million to $300 million per quarter, and an effective tax rate of about 20%.
Why did the results and prior periods change?
Effective Q4 2025, the bank changed its accounting for certain tax-related equity investments, which it applied retrospectively. This nets tax credits against investment expense and reclassifies line items. Prior-period figures were revised for comparability, and regulatory capital ratios were not restated.

04—Continue

← View all 8-K filings