Bank of America Q1 2026 Earnings Top Estimates
Bank of America Q1 2026 earnings beat estimates as higher net interest income and trading-led fees boosted profit and supported shareholder returns.
KEY TAKEAWAYS
- Results topped estimates as higher net interest income and trading and investment-banking fees lifted profitability.
- Diluted EPS rose 25.0% to $1.11 and net income was $8.6 billion as reported in the filing.
- Standardized CET1 ratio held at 11.2% while the firm returned $9.3 billion to shareholders.
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Bank of America’s Q1 2026 earnings, released April 15, 2026, topped estimates as higher net interest income and stronger trading and investment-banking fees boosted profitability, supported shareholder returns, and maintained a solid capital position.
Quarterly Results and Trading Performance
The company’s Form 8-K showed diluted earnings per share rose 25.0% year-over-year to $1.11. Net income increased 17.0% to $8.6 billion, while revenue net of interest expense reached $30.3 billion, up 7.0%.
Net interest income climbed 9.0% to $15.7 billion, driven by higher balances and asset repricing. The bank recorded a provision for credit losses of $1.3 billion, slightly below the prior year, and net charge-offs of $1.4 billion. Noninterest expense rose 4.0% to $18.5 billion. The efficiency ratio improved about 170 basis points to roughly 61.0%, producing operating leverage of 290 basis points.
Global Markets generated $2.0 billion in net income, with sales-and-trading revenue up 13.0% to $6.4 billion, including $63 million of net debit valuation adjustment gains. Excluding these gains, sales-and-trading revenue rose 12.0%. Equities revenue jumped 30.0% to $2.8 billion, while fixed income, currencies, and commodities (FICC) revenue increased 2.0% to $3.5 billion. Investment-banking fees totaled $1.8 billion, up 21.0%.
Consumer Banking posted net income of $3.1 billion and revenue of $11.0 billion, a 5.0% increase. Average deposits in the unit were $951 billion, modestly higher than a year earlier.
Capital, Liquidity, and Shareholder Returns
Average deposits across the company rose 3.0% year-over-year to $2.02 trillion, marking the 11th consecutive quarter of growth. The bank reported a standardized common equity Tier 1 (CET1) ratio of 11.2% on $199.7 billion of CET1 capital as of March 31, 2026.
Management returned $9.3 billion to shareholders through dividends and share repurchases during the quarter. Tangible book value per share increased 7.0% year-over-year to $28.84. Chair and Chief Executive Brian Moynihan said, "We remain watchful of evolving risks."
