PROVIDENCE – Bank of America Corp. on Wednesday reported a net income of $8.58 billion for the first quarter of 2026, up 17% from $7.4 billion a year earlier, as stronger trading results, higher net interest income and broad-based balance sheet growth lifted performance amid steady consumer demand.
Earnings per diluted share rose to $1.11 from 89 cents a year earlier, exceeding Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was $1 per share.
Revenue net of interest expense increased 7% year over year to $30.27 billion from $28.2 billion, also topping Wall Street forecasts of $29.94 billion, according to Zacks.
Net interest income rose 9% to $15.7 billion from $14.4 billion a year earlier, while net interest margin – a key measure of how much the bank earns on loans relative to deposit costs – expanded to 2.07% from 1.99%.
Noninterest income increased to $14.5 billion from $13.8 billion, supported by stronger markets revenue and investment banking fees.
Noninterest expense rose 4% year over year to $18.5 billion from $17.8 billion, driven by higher revenue-related costs and continued investment in technology and personnel. The efficiency ratio improved to 61% from 63% a year earlier, as revenue growth outpaced expenses.
CEO Brian T. Moynihan said the quarter reflected both strength and caution in the broader economic environment.
“We remain watchful of evolving risks,” he said. “However, we saw healthy client activity, including solid consumer spending and stable asset quality, indicating a resilient American economy.”
The bank’s Global Markets division delivered a standout quarter, with sales and trading revenue rising sharply from a year earlier on stronger equities and fixed-income performance amid elevated client activity.
Consumer and commercial lending continued to expand, with average loans rising 9% year over year to $1.19 trillion, while average deposits increased 3% to $2.02 trillion, marking the 11th consecutive quarter of deposit growth.
The bank set aside $1.3 billion for credit losses, down from $1.5 billion a year earlier, reflecting stable credit quality across consumer and commercial portfolios.
Net charge-offs totaled $1.4 billion, slightly below $1.45 billion a year earlier, with credit card losses accounting for seasonal pressure. The net charge-off ratio improved to 0.48% from 0.54%, while delinquency trends continued to show gradual improvement.
The company returned $9.3 billion to shareholders during the quarter through dividends and share repurchases.
(Material from The Associated Press was used in this report.)
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
