◆ Inside the Latest Quarter (Q2 2026)

Bank of America (BAC) — the variant view

Bank of America's second quarter of 2026 earned a 17% return, but a record trading quarter helped get it there.

📈 BAC valuation, revenue & earnings — P/E, P/S, revenue, EPS →

The second quarter of 2026 was the best evidence yet that Bank of America can close its return gap. Revenue rose 15% to $31.6 billion and net interest income 9% to $16.0 billion; net income was $9.1 billion and diluted earnings per share $1.21, up 34%1. Return on tangible common equity was 17.0% and the efficiency ratio improved 359 basis points to 59%, with operating leverage of 6.6%2.

Q2 2026 vs Q2 2025 ($bn)27.4Revenue Q2 202531.6Revenue Q2 202617.2Expense Q2 202518.6Expense Q2 2026Bank of America Q2 2026 supplemental information
Revenue up 15%, costs up 8%.

Noninterest expense rose about 8.4% to $18,627 million34, about half the pace of revenue.

Every business grew. Consumer Banking earned $3,281 million, Global Wealth & Investment Management $1,413 million, Global Banking $2,046 million and Global Markets $2,626 million5. Equities revenue rose 70% to $3.6 billion, fixed income 9% to $3.5 billion, and investment banking fees 50% to $2.1 billion6.

Credit was benign. Net charge-offs were $1,412 million, a ratio of 0.47% against 0.55% a year earlier; the card charge-off rate fell to 3.55%7. Commercial reservable criticized exposure fell $5.8 billion to $22.1 billion8.

The bank returned $8.0 billion to shareholders, $2.0 billion in dividends and $6.0 billion in buybacks, with CET1 at 11.2%9. It then raised the quarterly dividend 14% to $0.3210.

The half-year shows the trend more clearly than the quarter. Net income was $17,658 million in the first half of 2026 against $14,530 million a year earlier, and diluted earnings per share $2.31 against $1.7911. Return on tangible common equity was 16.52% for the half against 13.79%12, above the bottom of the medium-term target range for six months running.

Guidance went up. The chief financial officer said full-year net interest income growth should be at the upper end of the 6% to 8% range, and operating leverage 300 to 400 basis points13. The number that matters next is the efficiency ratio: holding near 59% without a record trading quarter would prove the improvement was the bank, not the markets.

References
  1. ReportedRevenue rose 15% to $31.6 billion and net interest income 9% to $16.0 billion; net income was $9.1 billion and diluted earnings per share $1.21, up 34%.
    Bank of America second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - consolidated results, credit quality, capital and forward-looking risks. — Q2 2026 · publ. 14 July 2026 · source ↗
  2. ReportedReturn on tangible common equity was 17.0% and the efficiency ratio improved 359 basis points to 59%, with operating leverage of 6.6%.
    Bank of America second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - consolidated results, credit quality, capital and forward-looking risks. — Q2 2026 · publ. 14 July 2026 · source ↗
  3. ReportedNoninterest expense rose about 8.4% to $18,627 million, about half the pace of revenue.
    Bank of America second-quarter 2026 supplemental information, Form 8-K exhibit 99.3 - quarterly and half-year financial highlights and ROTCE. — Q2 2026 · publ. 14 July 2026 · source ↗
  4. Moat Explorer calcNoninterest expense rose about 8.4% to $18,627 million, about half the pace of revenue.
    Moat Explorer calculation from Bank of America's reported figures ($ millions unless stated). Deposits: cost of total deposits = interest on interest-bearing deposits / (average interest-bearing + average noninterest-bearing deposits): 2019 7,188 / 1,380,326 = 0.52%; 2021 537 / 1,914,286 = 0.03%; 2022 4,718 / 1,986,158 = 0.24%; 2023 26,163 / 1,887,541 = 1.39%; 2024 38,442 / 1,924,106 = 2.00%; 2025 34,513 / 1,984,182 = 1.74% (1,469,705 + 514,477 = 1,984,182, about $1.98 trillion). Average total deposits 2015 1,155,860; 2021 1,914,286; 2022 1,986,158 (about $1.99 trillion); 2015 to 2025 1,984,182 / 1,155,860 - 1 = 72%. Noninterest-bearing share 744,035 / 1,914,286 = 38.9% (2021); 514,477 / 1,984,182 = 25.9% (2025). Noninterest-bearing decline 751,470 - 514,477 = 236,993 (about $237 billion). JPMorgan comparison: deposit cost gap 1.80% - 1.74% = 0.06 points; 0.0006 x 1,984,182 = about 1,190 (about $1.2 billion). JPMorgan revenue per dollar of average deposits 182,447 / 2,506,565 = 7.3 cents; Bank of America 113,097 / 1,984,182 = 5.7 cents. JPMorgan year-end deposits 2,559,320 / 2,018,729 - 1 = 27%; revenue 182,447 / 113,097 - 1 = 61%; market value 935.79 / 391.80 = 2.4 times. Net income margin JPMorgan 57,048 / 182,447 = 31.3%; Bank of America 30,509 / 113,097 = 27.0%. Efficiency gap 61.65% - 52% = 9.65 points x 113,097 = about 10,914 (about $10.9 billion). Loans to deposits 1,185,700 / 2,018,729 = 58.7%. Uninsured deposits 723.0 + 134.9 = 857.9 billion; 857.9 / 2,018.7 = 42.5%; insured and other 2,018.7 - 857.9 = 1,160.8 billion. Consumer deposits per checking account 957.0 billion / 38.7 million = about $24,700. Securities: held-to-maturity unrealised loss as a share of common equity 108,596 / 244,800 = 44% (2022); 82,094 / 276,100 = 30% (June 2026). Held-to-maturity amortised cost 2021 674,591 - 2025 522,685 = 151,906 (about $152 billion); 2020 438,279 to 2021 674,591 = +236,312 (about $236 billion); 2021 fair value 665,890 - cost 674,591 = -8,701. Runoff time 505,828 / 34,794 = 14.5 years. Agency MBS share of loss 67,309 / 80,257 = 84%. Net interest income H1 31,742 / 29,113 - 1 = 9.0%. Capital: CET1 headroom (11.2% - 10.0%) x 1,792 billion = about 21.5 billion; 2027 minimum 4.5% + 3.5% + 2.5% = 10.5%. Capital returned 2025 (8.1 + 21.433) / 29.055 = 101% of net income to common. Average diluted shares 7,680.9 / 11,236.2 - 1 = -31.6%. EPS growth (3.81 / 1.31)^(1/10) - 1 = 11.3% a year. Price to tangible book 56.03 / 29.37 = 1.91. Revenue 2023 102,769 to 2025 113,097 = +10%. Compensation 42,346 / 69,727 = 61% of noninterest expense. Financial centers 3,530 / 3,664 - 1 = -3.7%. Noninterest expense Q2 2026 18,627 / 17,183 - 1 = 8.4%. Berkshire holding 483,394,015 / 1,032,852,006 - 1 = -53%. Investment banking fees Q2 2025 implied 2.1 / 1.5 = 1.4 billion. Segments (FTE, 2025): segment revenue 43,673 + 24,883 + 24,108 + 24,096 = 116,760; less All Other 3,054 = 113,706; less FTE adjustment 609 = 113,097. Shares of total FTE revenue: Consumer 43,673 / 113,706 = 38.4%; GWIM 24,883 / 113,706 = 21.9%. Shares of net income 30,509: Consumer 12,245 = 40.1%; Global Banking 7,793 = 25.5%; Global Markets 6,111 = 20.0%; GWIM 4,670 = 15.3%. Net income margins: Consumer 12,245 / 43,673 = 28.0%; GWIM 4,670 / 24,883 = 18.8% (2024 4,263 / 22,929 = 18.6%; 2023 3,947 / 21,105 = 18.7%); Global Banking 7,793 / 24,108 = 32.3%; Global Markets 6,111 / 24,096 = 25.4%. Consumer net interest income 35,309 / 43,673 = 81%; Consumer provision 4,649 / 5,675 = 82%. Growth 2023-2025: Consumer 43,673 / 42,031 - 1 = 3.9%; GWIM 24,883 / 21,105 - 1 = 17.9%; Global Markets 24,096 / 19,533 - 1 = 23.4%; Global Banking net income 7,793 / 10,072 - 1 = -23%. Consumer H1 2026 revenue 11,336 + 11,049 = 22,385. GWIM net interest income 7,197 / 24,883 = 29%. Revenue per dollar of year-end assets: Global Markets 24,096 / 1,032,858 = 2.3 cents; Consumer 43,673 / 1,039,346 = 4.2 cents. GWIM client balances 4,751,394 / 4,252,106 - 1 = 11.7%, increase 499,288; net flows 81,997 / 4,252,106 = 1.9%; consumer investment assets 639.5 / 599.1 - 1 = 6.7%. Revenue per dollar of balances: Private Bank 4,167 / 759,082 = 0.55%; Merrill 20,716 / 3,992,312 = 0.52%; Private Bank share of GWIM balances 759,082 / 4,751,394 = 16% and revenue 4,167 / 24,883 = 17%. Investment and brokerage services 19,956 / 17,766 - 1 = 12.3%. Common equity 277,251 / total assets 3,411,738 = 8.1%. AUM net flows 81,997 / 2,177,708 = 3.8%. Held-to-maturity loss 2023 97,994 / 263,249 = 37%. Share price 56.03 / 52-week high 65.23 - 1 = -14%. First half 2026 (Q1 + Q2): Consumer Banking revenue 11,049 + 11,336 = 22,385 and net income 3,060 + 3,281 = 6,341; Global Banking net income 2,087 + 2,046 = 4,133; Global Markets revenue 7,109 + 8,022 = 15,131 - segment shares, margins and growth. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Bank of America's Forms 10-K and 10-Q, earnings releases, JPMorgan's 10-K, Berkshire 13F tables and market data; operands shown in the source line.
  5. ReportedConsumer Banking earned $3,281 million, Global Wealth & Investment Management $1,413 million, Global Banking $2,046 million and Global Markets $2,626 million.
    Bank of America second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - segment results, returns on allocated capital and business highlights. — Q2 2026 · publ. 14 July 2026 · source ↗
  6. ReportedEquities revenue rose 70% to $3.6 billion, fixed income 9% to $3.5 billion, and investment banking fees 50% to $2.1 billion.
    Bank of America second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - segment results, returns on allocated capital and business highlights. — Q2 2026 · publ. 14 July 2026 · source ↗
  7. ReportedNet charge-offs were $1,412 million, a ratio of 0.47% against 0.55% a year earlier; the card charge-off rate fell to 3.55%.
    Bank of America second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - consolidated results, credit quality, capital and forward-looking risks. — Q2 2026 · publ. 14 July 2026 · source ↗
  8. ReportedCommercial reservable criticized exposure fell $5.8 billion to $22.1 billion.
    Bank of America second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - consolidated results, credit quality, capital and forward-looking risks. — Q2 2026 · publ. 14 July 2026 · source ↗
  9. ReportedThe bank returned $8.0 billion to shareholders, $2.0 billion in dividends and $6.0 billion in buybacks, with CET1 at 11.2%.
    Bank of America second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - consolidated results, credit quality, capital and forward-looking risks. — Q2 2026 · publ. 14 July 2026 · source ↗
  10. ReportedIt then raised the quarterly dividend 14% to $0.32.
    Bank of America Form 8-K exhibit 99.1, dividend increase to $0.32 and first-half 2026 capital return. — H1 2026 · publ. 24 July 2026 · source ↗
  11. ReportedNet income was $17,658 million in the first half of 2026 against $14,530 million a year earlier, and diluted earnings per share $2.31 against $1.79.
    Bank of America second-quarter 2026 supplemental information, Form 8-K exhibit 99.3 - quarterly and half-year financial highlights and ROTCE. — Q2 2026 · publ. 14 July 2026 · source ↗
  12. ReportedReturn on tangible common equity was 16.52% for the half against 13.79%, above the bottom of the medium-term target range for six months running.
    Bank of America second-quarter 2026 supplemental information, Form 8-K exhibit 99.3 - quarterly and half-year financial highlights and ROTCE. — Q2 2026 · publ. 14 July 2026 · source ↗
  13. ReportedThe chief financial officer said full-year net interest income growth should be at the upper end of the 6% to 8% range, and operating leverage 300 to 400 basis points.
    Bank of America second-quarter 2026 earnings call transcript. — Q2 2026 · publ. 14 July 2026 · source ↗
Sources
Generated September 25, 2026