Bank of America Corporation

What they do

Bank of America operates through four business segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets, with remaining operations in All Other. It serves individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments with a full range of banking and nonbank financial services. The company operates primarily in the U.S., with 77% of its approximately 213,000 employees located there as of December 31, 2025.

Revenue drivers

• Consumer Banking — Generated 2Q26 revenue of $11.3 billion, up 5% YoY, driven by average deposits of $957 billion and combined credit/debit card spend of $266 billion, up 9%. Net income was $3.3 billion.
• Global Wealth & Investment Management (GWIM) — Generated 2Q26 revenue of $6.9 billion, up 16% YoY, led by higher asset management fees of $4.4 billion, up 19%. Client balances reached $4.9 trillion, up 12%.
• Global Markets — Generated 2Q26 sales and trading revenue of $7.1 billion, up 33% YoY, with equities revenue up 70% to $3.6 billion and FICC revenue up 9% to $3.5 billion. Net income was $2.6 billion.
• Global Banking — Reported net income of $2.0 billion in 2Q26. Total Corporation investment banking fees (excl. self-led) were $2.1 billion, up 50% YoY, with average deposits of $652 billion, up 8%.

Recent performance

In 2Q26, Bank of America reported net income of $9.1 billion and diluted EPS of $1.21, up 34% YoY, on revenue of $31.6 billion, up 15%. Net interest income rose 9% YoY to $16.0 billion. Operating leverage was 6.6%, and the efficiency ratio improved roughly 360 basis points YoY. Annual 2025 net income was $30.51 billion on revenue of $113.10 billion, with diluted EPS of $3.81.

Strategy

Management emphasizes disciplined expense management while investing for growth, as evidenced by 6.6% operating leverage in 2Q26. The company continues to streamline its organizational structure by reducing corporate subsidiaries through intercompany mergers. It is focused on deepening client relationships and driving digital engagement, with 70% of total sales digitally-enabled and 4.4 billion digital logins in 2Q26. The company also highlights responsible growth and human capital development, having hired over 18,000 teammates in 2025 and delivered more than 7.6 million training hours.

Risks

• Economic and market conditions — Adverse changes in U.S. and global economic conditions, including interest rates, inflation, trade policies, and GDP growth, could materially impact the company's businesses and results.
• Credit losses — Future credit losses may be higher than expected due to changes in unemployment rates, real estate prices, and customer behavior, which would increase provision expenses.
• Litigation and regulatory actions — The company faces potential judgments, settlements, and penalties from pending litigation and regulatory inquiries, including matters related to unemployment benefits processing and the Zelle network.
• Interchange fee changes — Changes to Visa's and Mastercard's card payment network rules and reductions in interchange fees for U.S. merchants could reduce revenue.

Outlook

Management states that near-term investment banking pipelines remain strong and commercial borrowing has picked up. The company expects to continue benefiting from a healthy economic backdrop where consumers and businesses are spending, borrowing, and investing. It remains focused on delivering for clients while maintaining disciplined expense management and investments for growth. No specific forward-looking financial targets were provided in the excerpts.