- Bank of America reported third-quarter net income of $6.9 bn, down from $8.3 bn a year earlier, reflecting a $1.2 bn regulatory settlement charge. Adjusted earnings reached $8.1 bn, or $1.08 per share.
- Revenue increased 3% to $30 bn, supported by an 8% rise in net interest income to $16.4 bn and 13% revenue growth in Global Wealth and Investment Management.
- The bank returned $8.3 bn to shareholders through dividends and share repurchases, while average loans increased 6% to $1.23 trillion and deposits rose 2% to $2.02 trillion.
Bank of America (NYSE: BAC) reported third-quarter 2026 revenue of $30 bn, an increase of 3% year over year, as higher net interest income, stronger lending activity and growth in wealth management helped offset weaker investment banking and trading results.
Reported net income declined to $6.9 bn, or $0.91 per diluted share, from $8.3 bn, or $1.04 per share, in the corresponding quarter of 2025.
The results included a $1.2 bn non-tax-deductible regulatory settlement charge, equivalent to $0.17 per share, related to consent orders announced on October 13 by the Office of the Comptroller of the Currency and the Financial Crimes Enforcement Network (FinCEN).
The orders concern aspects of the bank’s compliance programs under the US Bank Secrecy Act, including anti-money laundering and economic sanctions requirements.
Excluding the settlement charge, adjusted net income totaled $8.1 bn, equivalent to adjusted earnings of $1.08 per share.
Net interest income increased 8% to $16.4 bn, driven by higher loan and deposit balances, fixed-rate asset repricing and increased interest income associated with Global Markets activities.
On a fully taxable-equivalent basis, net interest income reached $16.6 bn, while net interest yield improved by 15 basis points to 2.16%.
The team delivered organic growth, deepening client relationships and adding new ones. While investment banking and sales and trading revenues were lower, commercial lending grew in every client segment.
Brian Moynihan, chairman and CEO of Bank of America
Consumer Banking generated net income of $3.5 bn and revenue of $11.6 bn, up 4% from the previous year.
Average consumer deposits remained relatively stable at $949 bn, while average loans and leases totaled $321 bn. Average credit card balances increased 5% to approximately $106 bn.
Combined credit and debit card spending rose 8% to $266 bn, reflecting continued consumer payment activity.
The bank added more than 200,000 net new consumer checking accounts during the quarter, extending its consecutive quarterly growth record to 31 periods. Total consumer checking accounts reached 38.9 mn, with approximately 92% classified as primary accounts.
Consumer investment assets increased 14% to $664 bn, supported by higher market valuations and $18 bn in net client flows.
Digital banking activity also remained strong. Bank of America reported 50 mn active digital banking users, 4.2 bn digital logins and 2.3 mn digitally enabled sales, representing 71% of total sales.
Global Wealth and Investment Management reported revenue of $7.1 bn, up 13%, while net income increased to $1.5 bn.
Asset management fees climbed 16% to $4.5 bn, supported by higher market valuations, positive investment flows and increased net interest income.
Total client balances reached $5.1 trillion, representing 9% annual growth, while assets under management increased 12% to $2.4 trillion.
The division recorded $20 bn in assets under management inflows during the quarter and added approximately 5,000 new relationships with assets exceeding $500,000 across Merrill and Bank of America Private Bank.
Its pretax profit margin improved to 29%, compared with 27% a year earlier.
Global Banking reported net income of approximately $2 bn on revenue of $6.2 bn, broadly unchanged from the previous year.
Higher net interest income and treasury services revenue were offset by weaker investment banking fees. Total corporate investment banking fees, excluding self-led transactions, declined 11% to $1.8 bn.
Average deposits increased 6% to $669 bn, while average loans and leases rose 8% to $419 bn, supported by growth across corporate, commercial and business banking.
Global Markets generated net income of $1.2 bn, compared with approximately $1.6 bn a year earlier. Sales and trading revenue declined 5% to $5.1 bn. Fixed income, currencies and commodities revenue fell 17% to $2.6 bn, primarily reflecting weaker performance in mortgages, municipal securities and credit products.
Equities revenue increased 11% to $2.5 bn, supported by stronger client financing activity, particularly in Asia and the United States.
Credit quality remained relatively stable during the quarter. Provisions for credit losses totaled $1.3 bn, broadly unchanged from the previous year and below the $1.4 bn recorded in the second quarter.
Net charge-offs declined to approximately $1.3 bn, while the net charge-off ratio improved to 0.44%, compared with 0.47% in both the previous quarter and the third quarter of 2025.
The credit card charge-off rate declined to 3.22%, from 3.46% a year earlier. Both early- and late-stage credit card delinquency rates improved for the sixth consecutive quarter on a year-over-year basis.
Average loans and leases across the group increased 6% to $1.23 trillion, marking the tenth consecutive quarter of sequential growth. Average deposits rose 2% to $2.02 trillion.
Bank of America ended September with approximately $914 bn in average global liquidity sources and $198 bn in Common Equity Tier 1 capital. Its standardized CET1 ratio stood at 10.9%, above regulatory minimum requirements.
The bank returned $8.3 bn to shareholders during the quarter, including approximately $6 bn in common stock repurchases and $2.2 bn in dividends.
Reported noninterest expenses increased to $19.7 bn, reflecting the regulatory settlement and continued investment in technology and operations. Excluding the charge, adjusted expenses totaled $18.5 bn, resulting in an adjusted efficiency ratio of 62%, compared with the reported ratio of 66%.
Moynihan also pointed to the bank’s investment in artificial intelligence, noting that more than 200,000 employees are using AI tools across more than 300 approved applications.
For the first nine months of 2026, Bank of America generated $24.6 bn in net income, compared with $22.9 bn during the corresponding period of 2025.
The quarterly results show continued growth in the bank’s core lending, deposit and wealth management businesses, although the regulatory settlement and weaker capital markets activity weighed on reported profitability.
