Core Insights - Bank of America (BAC) reported fourth-quarter 2025 earnings of $0.98 per share, exceeding the Zacks Consensus Estimate of $0.95, with an 18% year-over-year growth in earnings [1][9] - The stock experienced a decline of over 2% in pre-market trading due to weak investment banking performance [1] Group 1: Financial Performance - BAC's net revenues reached $28.37 billion, surpassing the Zacks Consensus Estimate of $27.49 billion, marking an 8% increase from the prior-year quarter [6] - Net interest income (NII) grew 10% year over year to $15.92 billion, driven by higher interest income and increased loan balances [6][9] - Non-interest income rose 4% to $12.62 billion, attributed to higher fees and commissions [6] Group 2: Investment Banking Performance - Investment banking (IB) fees in the Global Banking division totaled $973 million, reflecting a 1% decline year over year [3] - Equity underwriting income saw a significant drop of 26%, while debt underwriting income remained stable [3] - Advisory revenues increased by 5% [3] Group 3: Trading and Advisory Performance - Trading revenues, excluding net DVA, grew 10% year over year to $4.53 billion, marking the 15th consecutive quarter of improvement [2] - Fixed-income trading fees increased by 1%, while equity trading income surged by 23% [2] Group 4: Expenses and Efficiency - Non-interest expenses rose by 4% to $17.44 billion, with increases across all cost components except professional fees [7] - The efficiency ratio improved to 61.11%, down from 63.04% in the previous year, indicating enhanced profitability [7] Group 5: Credit Quality - Provision for credit losses decreased by 10% year over year to $1.31 billion [8] - Net charge-offs declined by 12% to $1.29 billion, with non-performing loans and leases as a percentage of total loans at 0.49%, down 6 basis points from the prior year [8] Group 6: Capital Position and Share Repurchase - Book value per share increased to $38.44 from $36.147 a year ago, while tangible book value per share rose to $28.73 from $26.37 [10] - The company repurchased shares worth $6.3 billion during the reported quarter [11]

Investors were selling bank stocks Tuesday morning after three of the nation's largest banks—Citigroup, Bank of America, and Wells Fargo—reported mixed fourth-quarter earnings. Wells Fargo and Bank of America dropped 4.7% and 4.6%, respectively. Citigroup was down 2.2%. Shares of other banks that have yet to report earnings were falling, too, and the KBW Nasdaq Bank Index was down 1.2%. Wells Fargo's fourth-quarter earnings of $1.62 a share missed Wall Street analyst estimates of $1.66, according to FactSet ...

Core Insights - Bank of America reported a revenue of $28.37 billion for the quarter ended December 2025, reflecting an 11.9% increase year-over-year and a surprise of +3.19% over the Zacks Consensus Estimate of $27.49 billion [1] - The earnings per share (EPS) for the quarter was $0.98, up from $0.82 in the same quarter last year, although it did not exceed the consensus EPS estimate of $0.96 [1] Financial Performance Metrics - The efficiency ratio was reported at 61.1%, better than the average estimate of 62.9% from seven analysts [4] - Net interest income yield on earning assets was 2.1%, surpassing the average estimate of 2% [4] - The net charge-off rate was 0.4%, lower than the average estimate of 0.5% [4] - Book value per share was $38.44, slightly above the average estimate of $38.29 [4] - Total earning assets averaged $3038.88 billion, below the estimated $3064.43 billion [4] - Total nonperforming loans, leases, and foreclosed properties were reported at $5.91 billion, better than the estimate of $6.34 billion [4] - The Tier 1 leverage ratio was 6.8%, exceeding the average estimate of 6.7% [4] - Total non-performing loans were $5.8 billion, compared to the average estimate of $6.37 billion [4] - The Tier 1 capital ratio was 12.8%, slightly below the average estimate of 12.9% [4] - Total noninterest income was $12.62 billion, higher than the average estimate of $12.11 billion [4] - Net interest income on a fully taxable-equivalent basis was $15.92 billion, above the average estimate of $15.66 billion [4] - Investment and brokerage services generated $5.3 billion, exceeding the average estimate of $5.11 billion [4] Stock Performance - Bank of America's shares returned -0.5% over the past month, while the Zacks S&P 500 composite increased by +2.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Core Viewpoint - Bank of America Corporation (NYSE:BAC) is experiencing a decline in share price despite beating earnings estimates, leading analysts to consider it a potential buying opportunity [1]. Price Dynamics - In bull markets, traders often experience seller's remorse, leading them to repurchase shares when prices drop back to their previous selling levels [2]. - This behavior can transform resistance levels into support levels, as seen in the Bank of America stock chart [2]. Historical Price Levels - In May 2025, Bank of America faced resistance at a certain price level, followed by a selloff [4]. - The resistance was broken in June 2025, prompting remorseful sellers to buy back shares when the price fell to approximately $44.50 in August 2025, converting resistance into support [5]. - A similar pattern occurred around the $48.50 level, where it transitioned from resistance in July to support in October [6]. Current Market Situation - Recently, levels around $53.90 served as resistance in November but were broken in December [6]. - Following the earnings release, shares have retraced to this former resistance level, which is currently acting as support [7]. - If this support holds, it may present a buying opportunity similar to previous instances in August and October [8].

NEW YORK (AP) — Setting aside their current fight with the White House, things are looking good on Wall Street. The latest trio of big banks reported their results Wednesday — Bank of America, Citigroup and Wells Fargo — and while each of them do different flavors of banking the theme is the same: profits are up, dealmaking is healthy, and the consumer is doing just fine. “While any number of risks continue, we are bullish on the U.S. economy in 2026,” said Brian Moynihan, CEO and chairman of Bank of Am ...

Wall Street's main indexes slid for the second straight day as investors parsed results from Bank of America and Citigroup, while data for retail sales and producer prices did little to shake expectations for interest-rate cuts later this year. ...

Bank of America (NYSE: BAC stock) delivered a solid beat on earnings and revenue for the fourth quarter, reporting diluted earnings of $0.98 per share, surpassing the consensus of $0.95-$0.98. The ban... ...

Group 1 - U.S. retail sales in November exceeded expectations, while wholesale inflation showed a slight month-on-month increase [1] - Major U.S. stock indices opened lower, with the Nasdaq down 0.61%, S&P 500 down 0.38%, and Dow Jones down 0.09% [1] Group 2 - Alibaba's stock rose over 3% as its C-end monthly active users (MAU) surpassed 100 million, with a product launch event for the Qianwen APP scheduled for tomorrow [1] - Intel's stock increased by 2.8% following Trump's revelation that Apple has invested in Intel [1] Group 3 - Bank of America saw its stock drop over 3%, reporting only a 0.7% year-on-year growth in Q4 investment banking revenue, with a significant 18% decline in stock issuance revenue [1] Group 4 - Honeywell's stock rose by 1.5% as its quantum computing division, Quantinuum, plans to submit an IPO application [1]

Market Overview - U.S. stocks traded lower, with the Nasdaq Composite falling more than 100 points on Wednesday. The Dow decreased by 0.21% to 49,090.31, the NASDAQ declined by 0.67% to 23,551.77, and the S&P 500 fell by 0.47% to 6,931.31 [1] Company Earnings - Bank of America Corp reported a net income of $7.6 billion for Q4 fiscal 2025, down from $6.80 billion a year ago. The EPS was 98 cents, beating the analyst consensus estimate of 96 cents. Revenue increased by 7% year-over-year to $28.532 billion, surpassing the analyst consensus estimate of $27.944 billion [2] Commodity Prices - Oil prices increased by 1% to $61.73, gold rose by 1% to $4,643.70, silver surged by 5.8% to $91.365, and copper gained 0.5% to $6.0450 [5] Stock Movements - High Roller Technologies, Inc. shares surged by 322% to $14.65 after announcing a partnership with Crypto.com. Lottery.com Inc shares increased by 87% to $0.96, while Inspire Veterinary Partners Inc shares rose by 99% to $0.046 following an increase in authorized common stock. Conversely, Briacell Therapeutics Corp shares dropped by 53% to $5.11 after pricing a public offering at $5.59 per unit. Plus Therapeutics Inc shares fell by 41% to $0.28 after announcing a public offering at $0.38 per unit. Hub Cyber Security Ltd shares decreased by 40% to $0.32 after a reverse stock split announcement [8]

Financial Data and Key Metrics Changes - The company reported net income of $7.6 billion for Q4, up 12% from Q4 2024, with EPS increasing 18% to $0.98 per share [6][10] - Year-over-year revenue growth was 7%, driven by a 10% improvement in net interest income, reaching $15.9 billion [7][16] - Operating leverage of 330 basis points was achieved in Q4 through disciplined expense management [7][30] Business Line Data and Key Metrics Changes - Consumer Banking generated $11.2 billion in revenue for Q4, up 5% year-over-year, with net income of $3.3 billion, reflecting a 17% increase [35] - Global Banking reported net income of $2.1 billion for Q4, down 3% year-over-year, but achieved a 6% improvement in fees [40] - Global Markets achieved a record year with $24 billion in revenue, up 10% year-over-year, and net income of $6.1 billion, up 8% [42] Market Data and Key Metrics Changes - Average loans grew 8% year-over-year to $1.17 trillion, with commercial loans increasing by 12% [24] - Average deposits increased nearly 3% from Q4 2024, with Global Banking deposits growing by 13% [22] - Consumer investment balances reached nearly $600 billion, supported by strong client flows and market appreciation [36] Company Strategy and Development Direction - The company emphasized its commitment to responsible growth through diversified business models and investments in technology and digital capabilities [9][10] - Focus on maintaining operating leverage and improving efficiency ratios while investing in client-facing roles and technology [32][33] - The company aims to achieve 5%-7% growth in net interest income for 2026, supported by loan and deposit growth [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic environment, with consumer spending growing 5% and stable unemployment rates [15] - The company anticipates continued stability in net charge-offs and improvements in asset quality [34] - GDP growth is projected at 3.4% globally and 2.6% in the U.S. for 2026, with risks acknowledged but a constructive outlook maintained [15] Other Important Information - The company returned $8.4 billion to shareholders in Q4, including $2.1 billion in dividends and $6.3 billion in share repurchases [19] - The CET1 ratio decreased to 11.4%, remaining above the regulatory minimum, with plans to manage capital efficiently [20][21] Q&A Session Summary Question: Outlook on expense ratio guidance - Management indicated that the expense ratio guidance of 55%-59% remains unchanged despite accounting changes, as prior periods have been recast [48][51] Question: Expectations for absolute expenses and operating leverage - Management reiterated that organic growth and disciplined expense management will drive operating leverage, with expectations for NII growth of 5%-7% [56][60] Question: Update on technology spending and AI investments - Technology spending is expected to increase by 5%-7%, with significant investments in AI aimed at improving efficiency and reducing costs [68][72] Question: Timeline for CET1 ratio targets - Management plans to gradually reduce the CET1 ratio through business expansion and capital management, with a focus on maintaining a strong balance sheet [77][78] Question: Outlook for loan growth and drivers - Loan growth is expected to continue in the mid-single digits, driven primarily by commercial lending, with consumer categories also showing growth potential [82]