, /PRNewswire/ -- Bank of America Corporation today announced that the Board of Directors declared a regular quarterly cash dividend on Bank of America common stock of $0.32 per share, up $0.04 from the prior quarter, an increase of 14%. The dividend is payable on September 25, 2026 to shareholders of record as of September 4, 2026.
"The increase in our dividend reflects the strength of our earnings, the power of our franchise and our confidence in Bank of America's ability to drive long-term growth and create value for shareholders," said Bank of America Chair and CEO Brian Moynihan. "Today's announcement also reflects our continued commitment to return excess capital to shareholders while supporting economic growth, investing in clients and communities, and maintaining strength and stability through the economic cycle."
The company also continues to repurchase common stock under a $40 billion authorization from the Board of Directors, which has been in effect since August 1, 2025. In the first half of 2026, the company repurchased $13.2 billion of common stock and paid $4 billion in dividends. As of June 30, 2026, the current share repurchase program had approximately $17 billion in common stock repurchases remaining.
Bank of America's ability to make capital distributions depends, in part, on its ability to maintain regulatory capital levels above minimum capital requirements. The timing and amount of common stock repurchases made pursuant to the Bank of America common stock repurchase program are subject to various factors, including the company's capital position, liquidity, financial performance and alternative uses of capital, stock trading price, regulatory requirements and general market conditions, and may be suspended or discontinued at any time. Such repurchases may be effected through open market purchases or privately negotiated transactions, including repurchase plans that satisfy the conditions of Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.
The Board also declared a regular quarterly cash dividend of $1.75 per share on the 7% Cumulative Redeemable Preferred Stock, Series B. The dividend is payable on October 23, 2026 to shareholders of record as of October 9, 2026.
Forward-looking statements
Certain statements contained in this news release may constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the current expectations, plans or forecasts of Bank of America based on available information. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These statements often use words like "expects," "anticipates," "believes," "estimates," "targets," "intends," "plans," "predicts," "goal" and other similar expressions or future or conditional verbs such as "will," "may," "might," "should," "would" and "could." Forward-looking statements speak only as of the date they are made, and Bank of America undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.
Forward-looking statements represent Bank of America's current expectations, plans or forecasts of its future results, revenues, expenses, dividends, efficiency ratio, capital measures, and future business and economic conditions more generally, and other future matters. These statements are not guarantees of its future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond Bank of America's control. Actual outcomes and results may differ materially from those expressed in, or implied by, any forward-looking statements due to a variety of factors. You should not place undue reliance on any forward-looking statement and should consider all of the precautionary statements, uncertainties and risks discussed in Bank of America's filings with the Securities and Exchange Commission (SEC), including in Bank of America's Current Report on Form 8-K dated July 23, 2025, announcing Bank of America's common stock repurchase program, under Item 1A. "Risk Factors" of Bank of America's Annual Report on Form 10-K for the year ended December 31, 2025, and in any of Bank of America's other subsequent SEC filings.
Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving more than 69 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 60 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries and/or jurisdictions. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Investors may contact
Lee McEntire, Bank of America
Phone: 1.980.388.6780
[email protected]
Jonathan G. Blum, Bank of America (Fixed Income)
Phone: 1.212.449.3112
[email protected]
Reporters may contact
Jocelyn Seidenfeld, Bank of America
Phone: 1.646.743.3356
[email protected]
Baader Bank Aktiengesellschaft bought a new stake in Bank of America Corporation (NYSE:BAC – Free Report) in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 11,836 shares of the financial services provider’s stock, valued at approximately $570,000.
Several other hedge funds have also made changes to their positions in BAC. Abound Financial LLC purchased a new position in shares of Bank of America in the 4th quarter valued at approximately $26,000. Wiser Advisor Group LLC purchased a new stake in shares of Bank of America during the third quarter worth approximately $27,000. Legacy Bridge LLC lifted its holdings in shares of Bank of America by 182.3% during the fourth quarter. Legacy Bridge LLC now owns 511 shares of the financial services provider’s stock worth $28,000 after purchasing an additional 330 shares during the period. CrossGen Wealth LLC acquired a new stake in shares of Bank of America during the fourth quarter worth $30,000. Finally, Joseph Group Capital Management purchased a new position in Bank of America in the 4th quarter valued at $32,000. Institutional investors and hedge funds own 70.71% of the company’s stock.
Insiders Place Their Bets In related news, insider Geoffrey S. Greener sold 126,756 shares of Bank of America stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $53.01, for a total transaction of $6,719,335.56. Following the transaction, the insider owned 1,373,397 shares in the company, valued at approximately $72,803,774.97. The trade was a 8.45% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.27% of the stock is currently owned by company insiders.
Analyst Upgrades and Downgrades A number of equities research analysts have weighed in on BAC shares. The Goldman Sachs Group lifted their price objective on Bank of America from $58.00 to $63.00 and gave the company a “buy” rating in a report on Thursday, April 16th. Jefferies Financial Group reissued a “buy” rating and issued a $75.00 price target on shares of Bank of America in a report on Tuesday, July 14th. Barclays lifted their price target on Bank of America from $71.00 to $72.00 and gave the company an “overweight” rating in a research note on Wednesday, July 15th. Piper Sandler upped their price objective on Bank of America from $53.00 to $59.00 and gave the stock a “neutral” rating in a report on Thursday, April 16th. Finally, HSBC raised their target price on Bank of America from $55.00 to $60.00 and gave the company a “buy” rating in a report on Thursday, April 16th. Twenty-one research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $63.77.
Get Our Latest Stock Report on Bank of America
Bank of America Trading Up 1.2% Shares of BAC stock opened at $61.12 on Wednesday. The company has a market capitalization of $433.71 billion, a price-to-earnings ratio of 14.02, a PEG ratio of 0.97 and a beta of 1.17. The company has a current ratio of 0.83, a quick ratio of 0.82 and a debt-to-equity ratio of 1.23. The firm has a 50-day moving average price of $55.71 and a 200 day moving average price of $53.21. Bank of America Corporation has a twelve month low of $44.75 and a twelve month high of $62.12.
Bank of America (NYSE:BAC – Get Free Report) last posted its quarterly earnings data on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.13 by $0.08. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.The business had revenue of $8.08 billion for the quarter, compared to analysts’ expectations of $30.78 billion. During the same quarter last year, the firm earned $0.89 earnings per share. The business’s revenue was up 19.6% on a year-over-year basis. Research analysts forecast that Bank of America Corporation will post 4.66 earnings per share for the current fiscal year.
Bank of America Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Friday, June 5th were given a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend was Friday, June 5th. Bank of America’s payout ratio is 25.69%.
Key Bank of America News Here are the key news stories impacting Bank of America this week:
Positive Sentiment: Bank of America’s new BofA Rewards program crossed 3 million enrollments in just seven weeks, with most sign-ups happening digitally. That rapid adoption suggests the bank is successfully deepening customer relationships and could support future deposit growth and cross-selling. 3 Million+ Clients Enroll in New BofA Rewards™ Program in First Seven Weeks Positive Sentiment: Bank of America also enhanced its EricaAssist tool with generative AI, giving more than 18,000 employees faster real-time guidance to resolve client needs. Investors may view this as an efficiency and service-quality improvement that can help lower costs over time. BofA enhances AI-powered tool to resolve client needs faster Positive Sentiment: Oppenheimer reportedly added Bank of America to its latest buy ideas list with a near-perfect quant rating, reinforcing the bullish case for BAC among analysts. Bank of America leads Oppenheimer’s latest buy additions with near-perfect quant rating Positive Sentiment: The bank promoted Thorsten Pauli to lead Asia Pacific capital markets, a move that underscores continued focus on investment banking and global markets opportunities. Bank of America (BAC) Names Thorsten Pauli To Lead Asia Pacific Capital Markets Positive Sentiment: Bank of America’s small business digital banking platform again ranked first in a Keynova Group scorecard, which may bolster the view that BAC is gaining share through better digital products. Small Business Digital Banking Advances with Payment Innovations and Upgraded Invoicing and Receivables Capabilities Neutral Sentiment: Several stories highlighted Bank of America research on other companies, including Micron, Meta, Apple, CoreWeave, and Citizens Financial. These items mainly reflect BAC’s analyst franchise rather than a direct change in Bank of America’s fundamentals. Neutral Sentiment: The bank also released workplace wellbeing and broader economic commentary, which add color to the macro backdrop but are less likely to move BAC shares by themselves. BofA Report: Financial Wellbeing of Employees at U.S. Companies Hits Four-Year High, Even as Cost-of-Living Pressures Persist Bank of America Profile (Free Report)
Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.
Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.
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Bank of America vylepšila EricaAssist o generativní AI, která zaměstnancům během hovoru dodá kontextové informace do tří sekund. Nástroj používá více než 18 000 pracovníků a zkracuje průměrnou délku hovoru téměř o minutu.
New AI capabilities deliver relevant insights in seconds, helping employees provide more personalized client service in real-time
Key takeaways
More than 18,000 employees use EricaAssist as a human-assisted AI agent to help serve clients. New Generative AI (Gen AI) capabilities deliver contextual guidance in under three seconds, helping resolve client needs faster and supporting decision making by customer service representatives. EricaAssist reduces average call times by nearly one minute per interaction, improving efficiency and client experience. , /PRNewswire/ -- Bank of America (BofA) today announced enhancements to EricaAssist, its human assisted AI agent that supports employees during client conversations, delivering real time insights that help resolve client needs faster while keeping the employee at the center of the experience.
Used by more than 18,000 customer service representatives, EricaAssist works alongside employees during calls – summarizing and surfacing relevant guidance in real time – so employees can focus on listening to and understanding clients, explaining solutions, and building stronger relationships. The enhancements are making our human agents better and providing our customers with an improved and more efficient experience.
"EricaAssist reflects our high tech, high touch approach," said Ashley Ross, Head of Consumer Client Experience and Business Transformation at Bank of America. "By combining human judgment with real time AI guidance, we're helping employees navigate complex topics more easily and serve clients more effectively in the moments that matter most."
Bank of America customer service representatives use generative AI capabilities within EricaAssist to summarize why a client is calling, pull together relevant information, and recommend next steps based on the employee's role and the client's relationship with the bank – all without interrupting the flow of the conversation.
"This technology helps our teammates deliver relevant insights in seconds, while operating with strong governance, transparency, and accountability," said Tom Ellis, Chief Information Officer and Head of Consumer Technology at Bank of America.
Later this year, Bank of America plans to expand EricaAssist to support additional servicing scenarios and business lines.
Frequently asked questions
Question: Why enhance EricaAssist with GenAI capabilities?
Answer: Enhancing EricaAssist reflects the bank's focus on continuously improving how employees access and deliver personalized guidance and resolve client needs faster.
Question: How do EricaAssist enhancements reflect Bank of America's broader investments in technology?
Answer: Bank of America spends $14 billion annually on technology, of which more than $4 billion is allocated to new initiatives, including AI. These ongoing investments, combined with our high-tech, high-touch approach, continue to enhance our client experiences across all channels and to drive operational efficiencies across the company.
Question: Why blend AI with employee decision making?
Answer: Our responsible AI strategy ensures human oversight, transparency, and accountability for all outcomes. By leveraging AI at scale across our global operations, we are optimizing performance and improving client experiences. EricaAssist works alongside employees, supporting their decision-making and service. Employees ensure clients receive thoughtful guidance, with AI operating within established governance and oversight.
Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 60 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries and/or jurisdictions. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.
Reporters may contact
Catherine Page, Bank of America
Phone: 1.704.519.7314
[email protected]
Don Vecchiarello, Bank of America
Phone: 1.980.387.4899
[email protected]
, /PRNewswire/ -- Bank of America Corporation today announced the Board of Directors has authorized regular cash dividends on the outstanding shares or depositary shares of the following series of preferred stock:
Series of Preferred Stock
Dividend per Share
or Depositary Share1
Record Date
Payment Date
Floating Rate Non-Cumulative
Preferred Stock, Series E
$0.27234
July 31
August 17
Floating Rate Non-Cumulative
Preferred Stock, Series F
$1,105.52311
August 31
September 15
Adjustable Rate Non-
Cumulative Preferred Stock,
Series G
$1,105.52311
August 31
September 15
Floating Rate Non-Cumulative
Preferred Stock, Series 1
$0.29213
August 15
August 28
Floating Rate Non-Cumulative
Preferred Stock, Series 2
$0.29223
August 15
August 28
Floating Rate Non-Cumulative
Preferred Stock, Series 4
$0.29862
August 15
August 28
Floating Rate Non-Cumulative
Preferred Stock, Series 5
$0.28128
August 1
August 21
Fixed-to-Floating Rate Non-
Cumulative Preferred Stock,
Series FF
$29.37500
September 1
September 15
6.000% Non-Cumulative
Preferred Stock, Series GG
$0.3750000
August 1
August 17
5.375% Non-Cumulative
Preferred Stock, Series KK
$0.3359375
September 1
September 25
5.000% Non-Cumulative
Preferred Stock, Series LL
$0.3125000
September 1
September 17
4.250% Non-Cumulative
Preferred Stock, Series QQ
$0.2656250
August 1
August 17
4.750% Non-Cumulative
Preferred Stock, Series SS
$0.2968750
August 1
August 17
1 Each series of preferred stock, other than Series F and Series G, is represented by depositary shares.
Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 60 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries and/or jurisdictions. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Investors May Contact:
Lee McEntire, Bank of America
Phone: 1.980.388.6780
[email protected]
Jonathan G. Blum, Bank of America (Fixed Income)
Phone: 1.212.449.3112
[email protected]
Reporters May Contact:
Jocelyn Seidenfeld, Bank of America
Phone: 1.646.743.3356
[email protected]
Akcie Bank of America po zveřejnění výsledků za čtvrtletí vzrostly o 1,7 %, když EPS 1,21 USD překonal odhad 1,13 USD. Výnosy byly 8,08 miliardy USD, meziročně o 19,6 % vyšší.
Bank of America Corporation (NYSE:BAC) shares traded up 1.7% on Wednesday following a better than expected earnings announcement. The company traded as high as $62.03 and last traded at $61.6220. Approximately 43,138,347 shares traded hands during mid-day trading, an increase of 11% from the average session volume of 38,850,402 shares. The stock had previously closed at $60.62.
The financial services provider reported $1.21 earnings per share for the quarter, topping analysts’ consensus estimates of $1.13 by $0.08. The firm had revenue of $8.08 billion during the quarter, compared to analyst estimates of $30.78 billion. Bank of America had a net margin of 17.56% and a return on equity of 12.20%. The company’s revenue for the quarter was up 19.6% compared to the same quarter last year. During the same period in the prior year, the business earned $0.89 EPS.
Bank of America Announces Dividend The company also recently declared a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 5th were issued a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date was Friday, June 5th. Bank of America’s payout ratio is 27.72%.
More Bank of America News Here are the key news stories impacting Bank of America this week:
Positive Sentiment: Several firms raised their price targets on BAC after Q2 results, with Barclays, Wells Fargo, KBW, and Truist all seeing further upside on stronger earnings and better growth prospects. Positive Sentiment: Bank of America’s earnings call highlighted durable growth drivers including rising net interest income, loan and deposit gains, operating leverage, and AI-enabled productivity, which should support profitability. Bank of America Q2 Earnings Call Points to Durable Growth Drivers Positive Sentiment: Coverage following the quarter noted that Bank of America rode market volatility to trading records, while deal activity remained a bright spot, reinforcing the strength of its capital markets businesses. BofA rides market whiplash to trading records, deal activity shines Positive Sentiment: Commentary after the Q2 report said Bank of America’s consumer unit earned nearly $3.3 billion as spending held up, suggesting its retail banking franchise remains resilient. Neutral Sentiment: CEO Brian Moynihan also warned about AI security risks, but this appears more like an industry-wide caution than a direct business setback for BAC. Negative Sentiment: An article questioning whether Bank of America is overvalued could temper some enthusiasm if investors worry the post-earnings rally has already priced in much of the good news. Is Bank of America Corporation (BAC) Overvalued? Analyst Upgrades and Downgrades A number of equities research analysts recently issued reports on the company. HSBC lifted their target price on Bank of America from $55.00 to $60.00 and gave the company a “buy” rating in a research report on Thursday, April 16th. The Goldman Sachs Group upped their price target on Bank of America from $58.00 to $63.00 and gave the stock a “buy” rating in a research report on Thursday, April 16th. Robert W. Baird raised their price target on shares of Bank of America from $58.00 to $62.00 and gave the stock a “neutral” rating in a research note on Wednesday. Keefe, Bruyette & Woods lifted their price objective on shares of Bank of America from $67.00 to $70.00 and gave the company an “outperform” rating in a report on Wednesday. Finally, UBS Group boosted their price objective on shares of Bank of America from $63.00 to $68.00 and gave the stock a “buy” rating in a research report on Tuesday, July 7th. Twenty-one analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $63.77.
Read Our Latest Research Report on BAC
Insider Transactions at Bank of America In related news, insider Geoffrey S. Greener sold 126,756 shares of the company’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $53.01, for a total transaction of $6,719,335.56. Following the sale, the insider owned 1,373,397 shares in the company, valued at approximately $72,803,774.97. This represents a 8.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.27% of the company’s stock.
Institutional Inflows and Outflows A number of hedge funds have recently bought and sold shares of BAC. Abound Financial LLC bought a new position in shares of Bank of America in the fourth quarter valued at $26,000. Wiser Advisor Group LLC acquired a new position in Bank of America during the third quarter worth $27,000. Legacy Bridge LLC raised its position in Bank of America by 182.3% during the fourth quarter. Legacy Bridge LLC now owns 511 shares of the financial services provider’s stock worth $28,000 after acquiring an additional 330 shares in the last quarter. CrossGen Wealth LLC bought a new stake in Bank of America during the fourth quarter worth $30,000. Finally, Joseph Group Capital Management acquired a new stake in Bank of America in the fourth quarter valued at $32,000. 70.71% of the stock is currently owned by institutional investors.
Bank of America Trading Down 0.2% The business’s 50 day simple moving average is $55.11 and its 200 day simple moving average is $53.09. The stock has a market cap of $436.30 billion, a price-to-earnings ratio of 14.10, a PEG ratio of 1.00 and a beta of 1.17. The company has a quick ratio of 0.81, a current ratio of 0.83 and a debt-to-equity ratio of 1.23.
About Bank of America (Get Free Report)
Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.
Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.
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Bank of America zvýšila výhled růstu čistého úrokového výnosu pro rok 2026 na horní hranici 6–8 % a zvedla celoroční cíl provozní páky na 300–400 bazických bodů. Firma zároveň uvedla, že AI nástroje používá více než 200 000 zaměstnanců.
Key Takeaways Bank of America expects 2026 NII growth at the high end of 6-8%, backed by loans, deposits and repricing.BAC raised full-year operating leverage guidance to 300-400 basis points after a strong first half.More than 200,000 employees use AI tools as broad segment growth supports stronger earnings power. Bank of America Corporation (BAC - Free Report) used its second-quarter 2026 call to push a forward-looking message rather than simply celebrate a beat. Management framed the quarter as evidence that broad client activity, disciplined expenses and steady balance sheet optimization are translating into stronger earnings power.
That mattered because executives also tightened the focus on what comes next: net interest income at the high end of prior guidance, continued loan and deposit growth, and more operating leverage even as the company keeps spending on technology, marketing and AI tools.
BAC Raises the Bar on 2026 NIIChairman and CEO Brian Moynihan said the quarter showed organic growth across every business segment. Revenues of $31.6 billion beat the Zacks Consensus Estimate of $30.62 billion and rose 15% year over year. EPS of $1.21 topped the Zacks Consensus Estimate of $1.13 and increased 34% from the prior-year quarter.
The more important takeaway was the outlook. Chief financial officer Alastair Borthwick said Bank of America now expects full-year 2026 net interest income growth at the upper end of its 6% to 8% range, supported by loan and deposit growth, fixed-rate asset repricing and balance sheet optimization.
Borthwick also said the company’s banking book remains asset sensitive, while a 100-basis point parallel shift above the forward curve would add about $1 billion of NII over the next 12 months. That gave investors a clearer sense of the embedded earnings lift management still sees in the core franchise.
Bank of America Defends Deposit StrategyA KBW analyst pressed management on deposit pricing and whether BAC could keep outperforming peers in a higher-for-longer setting. Borthwick’s answer centered on client mix rather than rate competition. He said the company is prioritizing operating accounts and relationship deposits, not chasing rate-sensitive balances.
That response aligned with the quarter’s balance sheet trends. Average deposits rose to $2.02 trillion, the 12th straight quarter of sequential growth, while average loans and leases increased 8% from a year earlier to $1.22 trillion. Average consumer deposits were $957 billion, and Moynihan said spending trends strengthened during the quarter.
Management also sounded constructive on the second-half loan demand. In Q&A, Borthwick said commercial growth remains healthy and card balances are moving toward management’s target pace, reinforcing the view that NII growth is being driven by underlying business activity rather than a temporary market tailwind.
BAC Keeps Leaning Into Operating LeverageMoynihan and Borthwick repeatedly returned to operating leverage as one of the quarter’s defining features. The bank posted 6.6% operating leverage in the quarter, while the efficiency ratio improved 359 basis points from a year ago to 59%.
Borthwick said first-half 2026 operating leverage exceeded 450 basis points, leading management to lift its full-year expectation to 300-400 basis points from prior commentary of more than 200 basis points. He cautioned that second-half comparisons get harder because NII and investment banking were already accelerating in the back half of 2025.
A Bernstein analyst and a Citi analyst both tested whether that leverage outlook implied underinvestment. Moynihan rejected that framing, saying Bank of America is still investing heavily in financial centers, marketing, rewards, digital capabilities and AI, while productivity gains are helping offset some of that spending.
Bank of America Highlights AI and Segment BreadthManagement treated AI as a practical productivity story, not a separate growth narrative. Moynihan said more than 200,000 employees are using AI-enabled capabilities, generating over 400,000 prompts a day, with 300-plus approved AI use cases and 114 live generative AI use cases.
That message was tied directly to execution inside the businesses. Consumer Banking posted 10% net income growth, Global Wealth and Investment Management delivered 42% net income growth on record revenues, Global Banking benefited from a 50% jump in total corporation investment banking fees and Global Markets produced its 17th consecutive quarter of year-over-year sales and trading revenue growth.
In Q&A, management also linked AI enthusiasm to underwriting discipline. Moynihan said the bank is evaluating how AI affects borrowers and industries while also using the technology internally to improve speed, consistency and client coverage. That kept the tone measured even as executives sounded upbeat on the long-term opportunity.
BAC Leaves an Upbeat But Disciplined ToneThe call ended with a management team emphasizing breadth, not a single standout line item. Moynihan pointed to resilient consumers, healthy commercial activity, strong capital markets pipelines and continued capital returns, including $8 billion returned to its shareholders in the quarter through dividends and repurchases.
Borthwick’s closing tone was similarly disciplined. He described activity as healthy across lending, payments, wealth, investment banking and markets, while maintaining that credit quality remains stable and the balance sheet remains a source of strength.
Zacks Signals for Bank of AmericaBAC currently carries a Zacks Rank #3 (Hold) with a Value Score of C, Growth Score of C, Momentum Score of A and VGM Score of B. Under the Zacks framework, the rank is the first screen because earnings estimate revisions are the most important driver, while Style Scores help refine opportunity by value, growth and momentum characteristics.
That combination points to balanced style characteristics with stronger momentum than value or growth at the moment. The VGM Score of B is constructive, but the Style Score framework is most favorable when paired with Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks. A Zacks Rank can change after earnings as analyst estimate revisions move in response to the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bank of America uvedla, že digitální bankovnictví je klíčovým zdrojem vkladů: má zhruba 50 milionů aktivních uživatelů a 70 % spotřebitelských prodejů bylo digitálně umožněno.
Bank of America’s second-quarter earnings call Tuesday (July 14) was dominated by a simple message: Consumers in the United States are spending, companies are borrowing, capital markets are open, and the economy is proving stronger than expected.
That backdrop helped the bank cruise past its earnings targets. Beneath the victory lap, however, CEO Brian Moynihan and Chief Financial Officer Alastair Borthwick also offered signals on artificial intelligence, private credit, consumer risk and the bank’s increasingly digital operating model.
For Bank of America, AI is becoming both a revenue engine and a productivity tool. Borthwick said the bank is benefiting from financing the “massive capital investment and infrastructure build” around AI, particularly through investment banking and Global Markets. Internally, Bank of America employees are generating more than 400,000 AI prompts a day. The bank has approved more than 300 AI use cases, including 114 live generative AI applications and 34 that are fully implemented.
The payoff should extend beyond cutting costs, management said.
“Here’s what’s going to come out of that, we believe: growth, efficiency, risk management and resiliency,” Borthwick said.
Moynihan added that AI is already making software development more productive, so the same technology budget should produce more code over time. Still, the technology needs controls.
“It has great utility,” Moynihan said. “It has to be carefully managed. You have to have your data perfect. You have to have your rules base, so it doesn’t make mistakes.”
Private credit also came up, although management used the broader phrase “private capital lending.” Moynihan said some highly leveraged activity had moved outside the banking system, but parts of it are returning on terms banks can accept. More broadly, he said feared credit problems have not materialized.
“The issues of the moment, whether it’s real estate four or five years ago or whether it was private capital lending and all this stuff, just aren’t surfacing the way people thought they would,” Moynihan said.
The consumer picture was similarly steady. Card charge-offs and delinquencies improved from both the prior quarter and a year earlier, Borthwick said. Bank of America’s credit card charge-off rate fell to 3.55%, from 3.82% a year ago, while early- and late-stage delinquencies improved for a fifth consecutive quarter. At the same time, combined credit and debit card spending rose 9% to $266 billion, and management said broader consumer spending was running more than 6% above last year during the second quarter.
Digital Banking Stars in Q2 Digital banking is increasingly tied to the bank’s funding advantage. Bank of America reported roughly 50 million active digital banking users, 24.6 million active Erica (AI assistant) users and 4.4 billion digital logins during the quarter. Seventy percent of consumer sales were digitally enabled.
Digital tools, security and rewards help the bank win operating accounts and maintain a favorable deposit mix, Borthwick said. It’s a reminder that digital engagement is not just a service channel, but a core part of deposit economics.
On the economy, the bank’s research team raised its 2026 U.S. growth forecast to 2.2%, Moynihan said, calling the economy “more durable than expected,” supported by consumer spending, AI-driven investment and lower energy costs. He also identified inflation and tight monetary policy as the main risks.
Commercial loan growth was broader than the AI buildout, with business banking, commercial banking and corporate banking all contributing, Borthwick said.
Cryptocurrency and stablecoins were not discussed in either the prepared remarks or the analyst Q&A. On the call, Bank of America’s digital story remained centered on Erica, Zelle, CashPro and AI-enabled banking rather than crypto or stablecoins.
As for the headline numbers, Bank of America reported net income of $9.1 billion, up 27% year over year, on revenue of $31.6 billion, up 15%. Diluted earnings per share rose 34% to $1.21. Net interest income increased 9% to $16 billion, investment banking fees jumped 50% to $2.1 billion, and the bank delivered 6.6% operating leverage with a 17% return on tangible common equity.
Bank of America ve 2. čtvrtletí překonala odhady tržeb i EPS, tažená silným obchodováním a vyššími poplatky z investičního bankovnictví. Čistý zisk stoupl na 9,07 mld. USD.
Americká banka Bank of America zveřejnila výsledky hospodaření za druhé čtvrtletí roku 2026. Výnosy i zisk na akcii překonaly odhady analytiků, přičemž výrazně nad očekáváním skončily zejména výnosy z obchodování s akciemi bez vlivu DVA. Růst byl podpořen vyššími čistými úrokovými výnosy, silnou aktivitou v obchodování a vyššími poplatky z investičního bankovnictví.
Výsledky společnosti Bank of America (BAC) za 2Q 2026 2Q 2026 Konsensus 2Q 2026 2Q 2025 Výnosy (mld. USD) 31,56 30,49 27,44 Čistý zisk (mld. USD) 9,07 -- 7,17 Zisk na akcii (EPS, USD/akcie) 1,21 -- 0,90 Výsledky za 2Q Výnosy meziročně vzrostly o 15 % na 31,56 mld. USD, nad odhadem 30,49 mld. USD.
Čisté úrokové výnosy dosáhly 16,00 mld. USD (+9 % meziročně) a překonaly odhad 15,92 mld. USD. Čistá úroková marže dosáhla 2,08 %, v souladu s odhadem.
Čisté úrokové výnosy, zdroj: Bank of America
Výnosy z obchodování (bez DVA) dosáhly 7,16 mld. USD, výrazně nad odhadem 6,21 mld. USD. Z toho výnosy z obchodování dluhopisů, měn a komodit (FICC) činily 3,54 mld. USD (odhad: 3,53 mld. USD), zatímco výnosy z obchodování s akciemi dosáhly 3,62 mld. USD a výrazně překonaly odhad 2,69 mld. USD.
Celkové výnosy ze správy majetku a investic dosáhly 6,87 mld. USD, nad odhadem 6,61 mld. USD.
Výnosy z investičního bankovnictví činily 2,14 mld. USD a překonaly odhad 1,87 mld. USD. Poradenské poplatky dosáhly 558 mil. USD (odhad: 540,6 mil. USD), výnosy z dluhového financování 1,11 mld. USD (odhad: 958,7 mil. USD) a výnosy z akciového financování 535 mil. USD (odhad: 410,6 mil. USD).
Náklady na riziko (tvorba opravných položek) činily 1,37 mld. USD, pod odhadem 1,51 mld. USD. Čisté odpisy úvěrů dosáhly 1,41 mld. USD, mírně pod odhadem 1,43 mld. USD.
Náklady na riziko (tvorba opravných položek), zdroj: Bank of America
Personální náklady činily 10,99 mld. USD, pod odhadem 11,08 mld. USD. Celkové nepersonální náklady dosáhly 18,63 mld. USD, nad odhadem 18,35 mld. USD.
Rentabilita vlastního kapitálu (ROE) činila 12,7 % (odhad: 11,9 %), rentabilita aktiv (ROA) dosáhla 1,03 % (odhad: 0,96 %) a rentabilita hmotného kapitálu (ROTCE) činila 17 % (odhad: 15,9 %).
Objem úvěrů dosáhl 1,22 bil. USD, v souladu s odhadem. Celkové vklady činily 2,03 bil. USD, mírně pod odhadem 2,05 bil. USD.
Celkové úvěry a leasingy, zdroj: Bank of America
Kapitálový poměr CET1 dosáhl 12,5 %, v souladu s odhadem. Standardizovaný CET1 poměr činil 11,2 %, rovněž v souladu s odhadem.
Komentář CEO „Byl to jeden z našich nejsilnějších kvartálů, se ziskem na akcii vyšším o 34 % meziročně. Každý obchodní segment vykázal dvouciferný růst čistého zisku a silnou návratnost kapitálu. Výnosy vzrostly o 15 % oproti loňskému roku, jak jsme prohlubovali vztahy se stávajícími klienty a získávali nové. Byl to zároveň výjimečný kvartál pro naše segmenty zaměřené na trhy, kdy poplatky z investičního bankovnictví vzrostly o 50 % meziročně. V krátkodobém horizontu zůstává poptávka silná a komerční půjčování se zrychlilo. Disciplinované řízení nákladů spolu s investicemi do růstu pomohlo dosáhnout provozní páky 6,6 % a zlepšení efektivity o zhruba 360 bazických bodů oproti loňskému roku. Do budoucna se nadále soustředíme na to, co umíme nejlépe – sloužit klientům v každé fázi jejich finančního života,“ uvedl Brian Moynihan, předseda představenstva a generální ředitel Bank of America.
Návrat kapitálu akcionářům Společnost za druhé čtvrtletí vrátila akcionářům celkem 8,0 mld. USD, z toho 2,0 mld. USD formou dividend a 6,0 mld. USD prostřednictvím zpětného odkupu akcií.
Akcie Bank of America Akcie Bank of America (BAC) v předburzovní fázi obchodování klesají o 1,18 % na 58,80 USD.
Akcie Bank of America Corp (BAC) před výsledky uzavřely na 59,5 USD Ukazatel Ukazatel Kapitalizace (mld. USD) 422,2 P/E 13,7 Vývoj za letošní rok (%) +8,2 Očekávané P/E 13,2 52týdenní minimum (USD) 44,8 Prům. cílová cena (USD) 64,9 52týdenní maximum (USD) 60,8 Dividendový výnos (%) 1,9 Zdroj: Bank of America, Bloomberg
Bank of America (BAC) oznámí výsledky za 2Q26 14. července; výnosy mají meziročně vzrůst o 15,7 % na 30,62 miliardy USD a EPS na 1,13 USD. Trh čeká podporu od vyššího čistého úrokového výnosu, investičního bankovnictví i obchodování.
Key Takeaways BAC will report 2Q26 results on July 14, with revenues and earnings expected to rise y/y.BAC may benefit from higher NII, solid investment banking fees and strong trading activity in Q2.Investors should watch guidance and management commentary before initiating any new position in the stock. Bank of America (BAC - Free Report) is scheduled to announce second-quarter 2026 results on July 14, before the opening bell.
The company began 2026 on a positive note, with robust trading and investment banking (IB) performance driving first-quarter results. BAC’s upcoming quarterly results are also expected to be solid despite rate uncertainty and lingering geopolitical headwinds. The Zacks Consensus Estimate for the company’s second-quarter revenues is pegged at $30.62 billion, indicating 15.7% year-over-year growth.
In the past seven days, the consensus estimate for earnings for the to-be-reported quarter has been revised higher to $1.13. The figure suggests a 27% rise from the prior-year quarter, as higher net interest income (NII) and solid capital markets business are likely to have supported BAC’s bottom-line growth.
Estimate Revision Trend
Image Source: Zacks Investment Research
Bank of America has an impressive earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in the trailing four quarters, the average beat being 7.3%.
Earnings Surprise History
Image Source: Zacks Investment Research
Key Drivers of Bank of America’s Q2 PerformanceNII: The interest rate environment remained supportive for Bank of America’s NII in the second quarter. The Federal Reserve paused its rate-cutting cycle and has signaled the possibility of a rate hike later this year as inflation remains stubbornly above its target. Sustained healthy lending yields have been favorable for banks, including BAC.
Building on the momentum seen in the first quarter, Bank of America’s lending activity is expected to have strengthened further in the to-be-reported quarter. According to the Federal Reserve’s latest data, the demand for commercial and industrial loans, and consumer credit remained resilient in the second quarter, while the demand for real estate loans was comparatively modest.
Thus, robust loan growth, combined with easing deposit and funding costs, is likely to have supported BAC’s NII growth. The Zacks Consensus Estimate for the company’s second-quarter tax-equivalent NII is $16.24 billion, indicating a 9.6% increase from the year-ago quarter’s actual.
IB Fees: After a record-setting first quarter, global deal-making activity moderated amid geopolitical uncertainty, persistent valuation gaps, slowing economic growth, elevated inflation and interest rates, and a stubbornly high backlog of private equity exits. Nevertheless, strategic buyers remained active, pursuing transactions aimed at enhancing scale, strengthening resilience and improving supply-chain security in response to the challenging operating environment.
Hence, while deal value declined in the second quarter (as only a handful of big transactions dominated the space), the volume of global mergers and acquisitions (M&As) improved year over year. This is expected to have supported Bank of America’s advisory fees.
Then, the second quarter saw strong IPO activity and equity issuances, including a blockbuster mega offering from SpaceX and Google parent Alphabet Inc. Likewise, global bond issuance volume was solid, driven by corporate refinancing and infrastructure builds. Thus, growth in BAC’s underwriting fees (accounting for almost 40% of total IB fees) is expected to have been strong in the to-be-reported quarter.
The Zacks Consensus Estimate for BAC’s total IB income of $1.96 billion for the second quarter indicates a rise of 37% from the prior-year quarter’s actual.
Trading Income: Client activity and market volatility were strong in the second quarter, though both were less pronounced compared with the preceding quarter. Trading conditions were influenced by shifting expectations around artificial intelligence, persistent geopolitical tensions, lingering inflation concerns and a more hawkish stance from the Fed. Volatility was high in equity markets and other asset classes, including commodities, bonds and foreign exchange. Thus, BAC is likely to have recorded a strong trading performance this time as well.
The Zacks Consensus Estimate for market making and similar activities of $3.93 billion for the to-be-reported quarter suggests a 24.5% rise on a year-over-year basis. Management anticipates trading revenues in the second quarter to increase 15% year over year.
Expenses: While Bank of America managed expenses prudently in the past, expansion into new markets by opening financial centers and efforts to digitize operations and upgrade existing financial centers are expected to have kept non-interest expenses elevated in the to-be-reported quarter.
Asset Quality: After setting aside a modest amount for potential loan losses in the first quarter, Bank of America is likely to have maintained a similar provisioning trend in the quarter under review. Although the period began with concerns related to the Middle East conflict, oil price volatility and persistent inflation, the subsequent ceasefire helped drive a meaningful decline in crude prices. This, coupled with resilient economic growth and broadly stable credit conditions, is expected to have supported a decline in the company’s provision for credit losses.
The Zacks Consensus Estimate for non-performing loans and leases of $6.68 billion implies an 11.6% increase from the prior-year quarter.
What Our Model Reveals About BAC’s Q2 EarningsPer our proven model, the chances of an earnings beat for BAC are high this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you can see below.
Bank of America has an Earnings ESP of +0.64%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
The company carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
BAC’s Price Performance & Valuation AnalysisIn the second quarter, BAC shares gained 15.6%, outperforming the S&P 500 Index. In the same time frame, shares of two of its close peers JPMorgan (JPM - Free Report) and Citigroup (C - Free Report) rallied 10.8% and 21.4%, respectively.
2Q26 Price Performance
Image Source: Zacks Investment Research
Both JPMorgan and Citigroup are slated to announce quarterly numbers on the same day as BAC.
Let us check out the value Bank of America offers investors at current levels. BAC stock is trading at a 12-month trailing price-to-tangible book (P/TB) of 2.14X. This is below the industry’s 3.38X. This shows that the stock is relatively inexpensive.
Price-to-Tangible Book (TTM)
Image Source: Zacks Investment Research
The BAC stock is trading at a discount compared with JPMorgan, which has a P/TB of 3.27X. However, Citigroup has a P/TB of 1.47X, making it inexpensive compared with Bank of America.
How to Approach BAC Shares Before Q2 Earnings?Bank of America is well-positioned to continue to benefit from its vast scale, extensive capital markets operations and international footprint (which will drive significant fee income).
Given the industry-wide solid lending scenario, along with stabilizing funding costs and the possibility of a rate hike later this year, the company’s NII growth is expected to be robust. Management expects NII (FTE basis) to grow in the upper end of 6-8% in 2026.
BAC’s aggressive branch expansion across the United States as part of a broader strategy to solidify customer relationships and tap into new markets will further drive interest income growth over time. This will also help capitalize on cross-selling opportunities.
However, while Bank of America’s outlook remains constructive, investors may want to avoid rushing to buy the stock. Instead, they should closely watch management’s commentary on how geopolitical risk and market volatility affect the company’s performance and how the firm plans to navigate the current environment. Any revisions to BAC’s 2026 guidance for NII, IB, non-interest expenses and asset quality will be especially important, given the recent macro developments. Broader macroeconomic and policy trends that could materially shape the company’s performance trajectory should also be carefully considered.
Existing shareholders may hold BAC stock, given its strong fundamentals and proven resilience. Potential investors should carefully weigh these factors and assess their risk tolerance before initiating new positions.
Analytici očekávají, že Bank of America vykáže čtvrtletní zisk 1,13 USD na akcii a výnosy 30,62 miliardy USD, což by znamenalo meziroční růst o 27 % a 15,7 %.
Wall Street analysts forecast that Bank of America (BAC - Free Report) will report quarterly earnings of $1.13 per share in its upcoming release, pointing to a year-over-year increase of 27%. It is anticipated that revenues will amount to $30.62 billion, exhibiting an increase of 15.7% compared to the year-ago quarter.
Over the last 30 days, there has been an upward revision of 1.6% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some Bank of America metrics that Wall Street analysts commonly model and monitor.
According to the collective judgment of analysts, 'Efficiency Ratio (FTE basis)' should come in at 59.8%. The estimate compares to the year-ago value of 64.6%.
Analysts forecast 'Total earning assets - Average balance' to reach $3121.38 billion. The estimate compares to the year-ago value of $3050.21 billion.
The combined assessment of analysts suggests that 'Book value per share of common stock' will likely reach $39.22 . Compared to the present estimate, the company reported $37.13 in the same quarter last year.
The collective assessment of analysts points to an estimated 'Total nonperforming loans and leases' of $6.68 billion. Compared to the current estimate, the company reported $5.98 billion in the same quarter of the previous year.
It is projected by analysts that the 'Tier 1 Capital Ratio' will reach 12.5%. Compared to the present estimate, the company reported 12.8% in the same quarter last year.
The consensus among analysts is that 'Total nonperforming loans, leases and foreclosed properties' will reach $6.78 billion. Compared to the present estimate, the company reported $6.10 billion in the same quarter last year.
Based on the collective assessment of analysts, 'Tier 1 Leverage Ratio' should arrive at 6.5%. Compared to the present estimate, the company reported 6.7% in the same quarter last year.
The consensus estimate for 'Net Interest Income- Fully taxable-equivalent basis' stands at $16.24 billion. Compared to the present estimate, the company reported $14.82 billion in the same quarter last year.
Analysts' assessment points toward 'Total Noninterest Income' reaching $14.76 billion. Compared to the present estimate, the company reported $11.79 billion in the same quarter last year.
Analysts expect 'Investment and brokerage services' to come in at $5.47 billion. The estimate compares to the year-ago value of $4.78 billion.
The average prediction of analysts places 'Investment banking fees' at $1.96 billion. Compared to the current estimate, the company reported $1.43 billion in the same quarter of the previous year.
Analysts predict that the 'Total fees and commissions' will reach $10.73 billion. Compared to the current estimate, the company reported $9.47 billion in the same quarter of the previous year.
View all Key Company Metrics for Bank of America here>>>
Over the past month, Bank of America shares have recorded returns of +6.9% versus the Zacks S&P 500 composite's +1.1% change. Based on its Zacks Rank #3 (Hold), BAC will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Bank of America poskytla OpenAI první úvěrovou linku ve výši 520 milionů USD, zatímco se firma připravuje na IPO. BofA se tím zařadila mezi největší věřitele OpenAI.
Item 1 of 2 A Bank of America logo is seen on the entrance to a Bank of America financial center in New York City, U.S., July 11, 2023. REUTERS/Brendan McDermid
[1/2]A Bank of America logo is seen on the entrance to a Bank of America financial center in New York City, U.S., July 11, 2023. REUTERS/Brendan McDermid Purchase Licensing Rights, opens new tab
CompaniesJuly 8 (Reuters) - Bank of America (BAC.N), opens new tab has extended a $520 million credit line to OpenAI, its first loan to the AI company that is preparing for an initial public offering, a person familiar with the matter told Reuters on Wednesday.
The loan makes BofA one of OpenAI's largest lenders and bolsters its credentials as a market leader in AI-related capital markets financing, the source said, requesting anonymity to discuss confidential information.
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BofA has helped raise nearly $500 billion in capital for AI-related companies since 2025, accounting for 60% of such fundraising across investment-grade debt, leveraged finance and equity capital markets, according to internal data seen by Reuters.
The second-largest American lender is also eyeing advisory roles on the planned IPOs of OpenAI and Anthropic, according to a second source familiar with the matter.
The move follows its role in SpaceX's blockbuster IPO, where it was a joint bookrunner and led the U.S. retail distribution effort. The rockets-to-AI company led by Elon Musk debuted in June at a valuation of more than $2 trillion after pulling off the world's largest IPO.
OpenAI confidentially filed for a U.S. IPO last month. Reuters has reported that the ChatGPT maker, a key player in the AI race, is targeting a valuation of more than $1 trillion in a listing that could come as soon as this year.
Mega IPOs are typically very lucrative for Wall Street banks, generating hundreds of millions of dollars in fees while opening the door to years of follow-on business.
OpenAI did not immediately respond to Reuters' request for comment. The news of BofA handing the company a credit line was first reported by Bloomberg earlier on Wednesday.
The AI company was founded in 2015 as a research-focused nonprofit, but created a for-profit arm four years later to help fund the soaring costs of developing AI systems.
Reporting by Saeed Azhar in New York and Manya Saini in Bengaluru; Editing by Diti Pujara
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Bank of America dnes dosáhla nového historického maxima nad 60 USD za akcii před výsledky za 2. čtvrtletí. Wall Street čeká tržby 30,58 miliardy USD a EPS 1,14 USD.
Bank of America (BAC +0.23%), the second-largest bank in the U.S. by assets, hit a new all-time high today, with the stock topping $60 per share.
Many large bank stocks have had a good year thus far, particularly the investment banks, which have benefited from some massive artificial intelligence initial public offerings.
However, some of the money-center banks, such as Bank of America, have not performed as well. The stock is up about 7.5%, trailing the broader market S&P 500 Index and the Nasdaq Bank Index.
Here’s what it means ahead of second-quarter earnings.
Image source: Getty Images.
Overcoming challengesBank of America is viewed as a high-quality banking franchise, with the number one consumer bank, and strong franchises in investment banking, trading, wealth management, and commercial lending.
The Iran war, which has led to higher inflation and higher bond yields, may have derailed some of its momentum because investors are now worried about persistent inflation and whether the Federal Reserve will need to raise interest rates to ensure price stability.
Higher rates can put pressure on the credit profiles of consumers and businesses and stymie lending and investment banking activity.
Bank of America has also long grappled with balance sheet issues that stem from the pandemic, when the bank loaded up on low-yielding, long-duration bonds.
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The bank has nearly $915 billion in bonds still yielding 2.77%, which is depressing earnings somewhat.
Furthermore, the bank locked in nearly $515 billion of bonds into its held-to-maturity folder that are still carrying an unrealized $81 billion loss.
While Bank of America will be able to hold these bonds to maturity and avoid taking these paper losses, it’s still a drag on earnings. Higher rates would likely exacerbate the paper losses as well.
The good news is that Bank of America is just coming off one of its strongest quarters in a while in the first quarter of 2026, having delivered a 16% return on tangible common equity (ROTCE).
Net interest income, the spread revenue banks make on their lending and bond portfolios after paying funding costs, has been building in recent quarters.
Investment banking should be strong as well, given that Bank of America served as one of the five main bookrunners on the massive Space Exploration Technologies (SPCX 5.80%) IPO.
How investors should think about earningsBank of America will report its second-quarter earnings next week on July 14.
Wall Street analysts’ consensus estimates suggest the bank will report revenue of $30.58 billion and earnings per share of $1.14. That implies slight growth from the first quarter, but certainly nothing heroic.
This is not a huge surprise because large banks are mature companies at this point.
Investors will need to see the company beat estimates for the stock to rise, and credit quality, investment banking fees, and net interest income trends will also be top of mind for the market.
With Bank of America trading at a price-to-tangible-book ratio over 2x and near 10-year highs, earnings misses or minor concerns could lead to selling pressure, given the elevated valuation.
BAC Price to Tangible Book Value data by YCharts
That said, I still think Bank of America is a decent long-term investment.
Continued improvements in ROTCE can lead to a higher valuation over time, and eventually the bond portfolio will run off, boosting the company’s earnings power.
Bank of America po stresových testech Fedu dividendu nezvýšila, ale podle článku jde jen o načasování a vyšší dividenda je pravděpodobná při nadcházejících výsledcích za 2. čtvrtletí.
Like all of the large banks that underwent the Federal Reserve's bank stress test, Bank of America (BAC +0.46%) passed. However, after passing, many of the other big banks announced sizable dividend increases. For example, Goldman Sachs (GS +0.14%) hiked its dividend by 11%, while Citigroup (C 0.17%) increased its dividend by 12%. Bank of America, by contrast, didn't increase its dividend. But investors shouldn't worry, a dividend hike is likely on the way.
Bank of America: It's just a timing issue Over the last few years, Bank of America has increased its dividend in the third quarter. The dividend increase is announced alongside second-quarter earnings. Bank of America will report second-quarter earnings in a couple of weeks. Basically, management is simply waiting until the normal time it makes dividend announcements, given how close the results of the Fed stress tests were announced relative to earnings season.
Image source: Getty Images.
In other words, Bank of America's choosing not to announce a dividend increase is probably not a sign that something is wrong with the company. The real question here is how large the increase will be. Obviously, that's entirely up to the board of directors. That said, the last two annual dividend increases were 8% and 7%. Both are sizable compared to the historical inflation rate, which is closer to 3%. It is reasonable to expect the next hike to be larger, though probably not dramatically so, since the last two increases were fairly generous.
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58.63
A discounted price could be a buying opportunity What's interesting is that Bank of America's price-to-earnings and price-to-book ratios are lower than those of JPMorgan Chase (JPM 0.11%) and Goldman Sachs, suggesting it's a value play in the banking sector. Meanwhile, Bank of America's P/E is lower than Citigroup's, even though Citigroup's P/B ratio is lower. So, it could still be viewed as the value option, given that Citigroup's stock has risen 60% over the past year, compared with Bank of America's 20%.
A dividend increase from Bank of America is unlikely to close the valuation gap in one fell swoop. But it will still be a nice reward for investors and provide a reason to stick around for the long term, allowing the market more time to close the valuation gap. Given that Bank of America's roughly 2% dividend yield is currently higher than its peers', income-focused investors should probably take a close look at the stock before it reports second-quarter earnings (and a likely dividend increase).
Citigroup is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and JPMorgan Chase. The Motley Fool has a disclosure policy.
SEC uložila Merrill Lynch, součásti Bank of America, pokutu 7,5 milionu USD za neúplné hlášení podezřelých transakcí. Firma neoznámila řadu SAR mezi dubnem 2020 a zářím 2024.
Signage is seen at the headquarters of the U.S. Securities and Exchange Commission (SEC) in Washington, D.C., U.S., May 12, 2021. Picture taken May 12, 2021. REUTERS/Andrew Kelly Purchase Licensing Rights, opens new tab
CompaniesJune 29 (Reuters) - The U.S. Securities and Exchange Commission fined Bank of America's (BAC.N), opens new tab Merrill Lynch unit $7.5 million on Monday for failing to file numerous reports meant to flag money laundering and other suspicious client activity.
Merrill neither admitted nor denied wrongdoing in accepting the civil fine over failures to file numerous suspicious activity reports (SARs) from April 2020 to September 2024.
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The case stemmed from Merrill's reliance on Bank of America's transaction monitoring software to comply with the federal Bank Secrecy Act, which requires broker-dealers to file SARs with the U.S. Treasury Department’s Financial Crimes Enforcement Network.
According to the SEC, the software aggregated potentially suspicious events into "event groups" and assigned them "risk scores."
The SEC said Merrill investigated only event groups with risk scores of at least 20 for possible SAR filings, even though its internal analyses showed that some event groups with risk scores below 20 would trigger SAR filings if investigated.
Merrill cooperated with the SEC probe, and filed numerous SARs after lowering the threshold for internal reviews of suspicious events, the regulator said.
In a statement, Charlotte, North Carolina-based Bank of America said it maintains rigorous anti-money laundering practices, and continually reviews its anti-money laundering systems to detect and report suspicious activity.
Reporting by Jonathan Stempel in New York. Editing by Mark Potter and Chizu Nomiyama
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Bank of America využívá AI k rozšíření veřejného financování a k udržení vedení v municipálních dluhopisech. Letos už zprostředkovala více než 46 miliard USD v dlouhodobých emisích státního a místního dluhu.
Bank of America BAC is turning to artificial intelligence to widen its reach in public finance underwriting, as Matthew McQueen, who oversees the bank's public finance department, sees AI helping the firm respond to more requests for proposals from US states and cities.
The bank has already managed more than $46 billion in long-term state and local debt sales so far this year, according to Bloomberg-compiled data. McQueen suggested AI could possibly expand Bank of America's coverage model without requiring more hiring, potentially helping the firm reinforce its lead in municipal bond underwriting.
AI-driven data center construction could also create more financing opportunities, especially in power and prepaid energy bonds. McQueen said the data center buildout is tightening labor supply and pushing up costs for other infrastructure projects, which could put pressure on issuance. Bank of America is looking to become more active in prepaid energy deals after the sector saw its first transaction tied to Alphabet earlier this month.
