BAC
FinancialsBank of America
Price Chart
Market Data
Financials
XBRL · SEC EDGAR2007–2025(19yr)| Metric | FY 2007 | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $66.8B | $72.8B | $119.6B | $110.2B | $93.5B | $83.3B | $88.9B | $84.2B | $82.5B | $83.7B | $87.4B | $91.2B | $91.2B | $85.5B | $89.1B | $95.0B | $98.6B | $101.9B | $113.1B | +11.0% |
| Net Interest Income | $34.4B | $45.4B | $47.1B | $51.5B | $44.6B | $40.7B | $42.3B | $40.0B | $39.3B | $41.1B | $44.7B | $47.4B | $48.9B | $43.4B | $42.9B | $52.5B | $56.9B | $56.1B | $60.1B | +7.2% |
| Noninterest Income | $32.4B | $27.4B | $72.5B | $58.7B | $48.8B | $42.7B | $46.7B | $44.3B | $43.3B | $42.6B | $42.7B | $43.8B | $42.4B | $42.2B | $46.2B | $42.5B | $41.6B | $45.8B | $53.0B | +15.7% |
| Noninterest Expense | $37.5B | $41.5B | $66.7B | $83.1B | $80.3B | $72.1B | $69.2B | $75.1B | $57.2B | $55.0B | $54.7B | $53.4B | $54.9B | $55.2B | $59.7B | $61.4B | $65.8B | $66.8B | $69.7B | -4.2% |
| Efficiency Ratio | 56.1% | 57.1% | 55.8% | 75.4% | 85.9% | 86.5% | 77.8% | 89.2% | 69.3% | 65.7% | 62.7% | 58.5% | 60.2% | 64.6% | 67.0% | 64.7% | 66.8% | 65.6% | 61.7% | +3.9pp |
| Net Income | $15.0B | $4.0B | $6.3B | -$2.2B | $1.4B | $4.2B | $11.4B | $4.8B | $15.9B | $17.9B | $18.2B | $28.1B | $27.4B | $17.9B | $32.0B | $27.5B | $26.5B | $27.1B | $30.5B | +12.4% |
| Net Margin | 22.4% | 5.5% | 5.2% | -2.0% | 1.5% | 5.0% | 12.9% | 5.7% | 19.3% | 21.4% | 20.9% | 30.8% | 30.1% | 20.9% | 35.9% | 29.0% | 26.9% | 26.6% | 27.0% | +0.3pp |
| ROA | — | 0.22% | 0.28% | -0.10% | 0.07% | 0.19% | 0.54% | 0.23% | 0.74% | 0.82% | 0.80% | 1.20% | 1.13% | 0.63% | 1.01% | 0.90% | 0.83% | 0.83% | 0.89% | +0.1pp |
| EPS (Diluted) | $3.29 | $0.54 | $-0.29 | $-0.37 | $0.01 | $0.25 | $0.90 | $0.36 | $1.31 | $1.50 | $1.56 | $2.61 | $2.75 | $1.87 | $3.57 | $3.19 | $3.08 | $3.21 | $3.81 | +18.7% |
1. THE BIG PICTURE
Bank of America is currently a high-performance engine being priced by the market as a stagnant utility. Despite delivering 11% revenue growth—far outstripping the 2.8% managed by JPMorgan—Bank of America trades at a notable discount to its peers. This disconnect suggests that while the "Responsible Growth" strategy is delivering top-tier financial results, investors remain fixated on the regulatory and macroeconomic shackles inherent to a systemically important financial institution.
2. WHERE THE RISKS HIT HARDEST
Bank of America’s primary strength—its massive, diversified scale across four business segments—is directly threatened by "significant" regulatory intensity. As a systemically important institution, Bank of America must maintain complex resolution plans; any failure to satisfy regulators on these plans could result in forced restrictions on the very growth and capital distributions that define its value proposition (Competitive Position).
Furthermore, the $2 trillion deposit base that anchors the balance sheet is vulnerable to "liquidity and funding" risks. If inflation remains high and the yield curve stays flat or inverted, Bank of America faces a potential "deposit migration" where customers move funds to higher-yielding digital assets or competitors. This would erode the low-cost funding advantage that currently allows Bank of America to maintain a 27.9% net margin (Risks).
3. WHAT THE NUMBERS SAY TOGETHER
The financial data reveals a company that is successfully trading complexity for efficiency, though it remains a work in progress. While revenue grew 11% over the last twelve months (XBRL), the most recent quarter showed a more moderate 7% increase (8-K). This divergence suggests that the "fixed-rate asset repricing" mentioned by management is beginning to stabilize after a period of rapid expansion.
Bank of America’s efficiency ratio of 64.1% is a point of relative weakness, trailing JPMorgan’s 52.5% (Peer Benchmarking). This confirms that management’s focus on "streamlining" and reducing organizational complexity is not just a strategic preference but a financial necessity to close the gap with its most efficient rival. However, the 18% jump in diluted EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric and a 5.2% buyback yield indicate that Bank of America is effectively converting its current revenue momentum into immediate shareholder value. With short interest at a negligible 1.4%, market sentiment appears stable, if unenthusiastic.
4. IS IT WORTH IT AT THIS PRICE?
At 9.8x forward earnings, the market is pricing in roughly 1.3% long-term growth (CAPM analysis). This valuation represents a modest discount to the peer median of 12.3x. This discount is difficult to justify purely on performance grounds, as Bank of America’s 11% revenue growth leads nearly all major peers, and its 27.9% net margin is second only to JPMorgan.
Bank of America is attractively valued because the market’s implied growth rate of 1.3% is significantly lower than the 6.5% implied EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric growth supported by current buybacks and business fundamentals. For the current price to be "correct," one would have to assume a near-total collapse in growth momentum. If Bank of America merely maintains GDP-pace growth of 2.5%, the justified multiple would rise to 11.2x, suggesting roughly 14% upside from current levels. The primary factor keeping the price depressed is likely the "regulatory intensity" and the risk that future capital distributions could be curtailed by oversight rather than performance.
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if the efficiency ratio trends toward 66% or higher, indicating that "disciplined expense management" is failing to offset rising operational or compliance costs.
- Constructive if the NIB (Non-Interest Bearing) deposit ratio stabilizes or improves, signaling that Bank of America is retaining its lowest-cost funding despite competition from higher-yielding alternatives.
6. BOTTOM LINE
Structural Advantage: A massive $2 trillion deposit base and a "Responsible Growth" framework that delivers superior revenue expansion and a 5.2% buyback yield.
Bottom Line: Bank of America is a top-tier operator trading at a discount, offering a rare combination of double-digit growth and aggressive capital return for a price that assumes stagnation.
1. Top 5 Material Risks
- Market and Economic Conditions: Prolonged economic downturns, inflation, and interest rate volatility impact net interest income and noninterest income. Specifically, if inflation does not decline toward the Federal Reserve’s target, a flat or inverted yield curve could emerge, impacting investor risk appetite and borrower delinquency rates.
- Liquidity and Funding: Bank of America relies on globally sourced deposits and capital market liabilities. An inability to access these markets, or a significant deposit migration to higher-yielding alternatives or digital assets, could increase borrowing costs and negatively impact the liquidity coverage ratio.
- Credit Risk: Deterioration in the financial condition of consumer and commercial borrowers—particularly in sectors like commercial real estate—could increase charge-offs and the provision for credit losses. The allowance for credit losses is based on management’s best estimate of lifetime current expected credit losses (CECL), which may prove insufficient if the economic outlook worsens.
- Operational and Cybersecurity Risk: As a large-scale financial institution, Bank of America faces increasing frequency and severity of cyberattacks, including ransomware and social engineering. A failure in information systems or those of third-party providers could disrupt critical banking activities and result in financial losses or regulatory fines.
- Regulatory and Compliance Risk: Bank of America is subject to comprehensive federal, state, and foreign laws and regulations. Failure to comply with evolving standards—such as those related to anti-money laundering (AML) and economic sanctions—can result in enforcement actions, civil or criminal penalties, and restrictions on business growth.
2. Company-Specific Risks
- G-SIB Surcharge: As a Global Systemically Important Bank (G-SIBG-SIBGlobal Systemically Important Bank — a major bank designated by regulators as critical to the global financial system, subject to stricter capital requirements), Bank of America is required to hold additional capital buffers. The G-SIBG-SIBGlobal Systemically Important Bank — a major bank designated by regulators as critical to the global financial system, subject to stricter capital requirements surcharge is expected to increase from 3.0 percent to 3.5 percent in 2027, which may constrain future common stock repurchases and dividends.
- Single Point of Entry Resolution Strategy: Bank of America Corporation’s resolution plan requires it to contribute most of its capital and liquidity to key subsidiaries. In a severe stress event, the parent company would be unable to draw liquidity from these subsidiaries, potentially impairing its ability to meet payment obligations.
- GSE Dependency: Bank of America relies on government-sponsored enterprises (GSEs) to purchase mortgage loans. In 2025, Bank of America sold approximately $2.3 billion of loans to GSEs; any reduction in their role could increase Bank of America's cost of funds and credit risk.
- U.K. Deferred Tax Assets: Bank of America holds significant U.K. net deferred tax assets (DTA) consisting of net operating losses. Adverse developments in tax laws or business model changes could force management to reassess the valuation allowance for these assets.
3. Regulatory/Legal Risks
- BSA/AML Consent Order: In December 2024, the OCC issued a Consent Order against Bank of America, N.A. (BANA) regarding its Bank Secrecy Act (BSA), anti-money laundering, and economic sanctions compliance programs.
- Consumer Protection Enforcement: Bank of America faces ongoing regulatory scrutiny and potential litigation regarding overdraft and non-sufficient funds fees, credit card sales practices, and the representment of fees.
- Data Privacy Compliance: Bank of America is subject to evolving global data privacy laws, including the CCPA and GDPR. Complexity regarding cross-border data transfers and potential suspension of such transfers could lead to operational disruptions and increased compliance costs.
- AI Governance: The use of emerging technologies like AI introduces legal and regulatory risks, including potential biases, unintended exposure of confidential information, and intellectual property infringement, which may complicate oversight and compliance.
4. Financial Impact Map
Market Volatility and Interest Rates → Net Interest Income → Lower revenue through lower net interest income if interest rates decrease or yield curves invert. Liquidity and Funding Stress → Liquidity Coverage Ratio → Potential shortfall in liquidity coverage and net stable funding ratios due to unexpected cash outflows or collateral calls. Credit Portfolio Deterioration → Provision for Credit Losses → Increased provision and allowance for credit losses, which directly reduces earnings. Cybersecurity and Operational Failure → Noninterest Expense → Increased costs for remediation, legal defense, regulatory fines, and potential loss of revenue from service disruptions. Regulatory Capital Requirements → Common Stock Repurchases and Dividends → Increased capital buffer requirements (e.g., G-SIBG-SIBGlobal Systemically Important Bank — a major bank designated by regulators as critical to the global financial system, subject to stricter capital requirements surcharge) may limit the capacity for capital distributions to shareholders.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-K | Feb 2026 | Dec 2025 |
| 8-K | Jan 2026 | — |
| 10-Q | Oct 2025 | Sep 2025 |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Block Expands Uber Eats Partnership and Launches AI-Driven Managerbot Commerce Tools
- ▸Expanded partnership integrates Cash App Pay into Uber and Uber Eats
- ▸Launched Square Managerbot to improve merchant operational efficiency
- ▸Projected 2028 revenue of $32.8B and earnings of $2.4B
- ▸Analyst consensus fair value estimate of $85.52 per share
- ▸Bank of America Securities initiated coverage on Block in April 2026
Bank of America authorizes $40B share repurchase program, raises quarterly dividend 7.7% to $0.28
- ▸Authorized $40B share repurchase program effective August 1, 2025
- ▸Quarterly dividend increased 7.7% to $0.28 per share
- ▸2025 record net income of $30.5B
- ▸Planned quarterly share repurchases of $4.5B in near term
- ▸Current dividend yield 2.30% with 29% payout ratio
Bank of America Launches Royal ONE Credit Card Partnership with Royal Caribbean Group
- ▸Launched Royal ONE credit card partnership with Royal Caribbean Group
- ▸Paris branch security incident prompted temporary remote work for regional staff
- ▸Projected 2029 revenue $130.6B, earnings $36.5B
- ▸Requires 6.7% annual revenue growth to meet 2029 targets
- ▸Current analyst fair value estimates range from $50 to $79 per share
Bank of America upgrades FWONK to Buy, cites durable growth and $2B buyback potential
- ▸Bank of America upgraded FWONK from Neutral to Buy
- ▸Price target maintained at $105 per share
- ▸2026 revenue estimate cut by $191M due to race cancellations
- ▸2026 adjusted OIBDA estimate cut by $80M
- ▸Potential for $2B in share repurchases by 2027
Bank of America to pay $72.5 million to settle Epstein-related lawsuit
- ▸Settlement amount totals $72.5 million
- ▸Lawsuit alleged bank enabled Jeffrey Epstein's activities
- ▸Resolves claims regarding financial services provided to Epstein
SpaceX Eyes Record $1.75 Trillion Valuation With 30% Retail IPO Allocation
- ▸Targeting $50B–$75B capital raise, potentially largest IPO in history
- ▸Proposed 30% share allocation for retail investors, triple industry standard
- ▸Targeting $1.75 trillion total company valuation
- ▸Potential IPO prospectus filing expected late March or early April 2026
- ▸Bank of America, Morgan Stanley, UBS, and Citigroup assigned distribution roles
Bank of America to pay $72.5 million to settle Epstein-related class-action lawsuit
- ▸$72.5 million settlement payment agreed to resolve class-action lawsuit
- ▸Alleged failure to flag suspicious payments linked to Jeffrey Epstein
- ▸Lawsuit claimed bank financially benefited from Epstein's associates
- ▸Class-action filed on behalf of victims abused between 2011 and 2019
- ▸Bank accused of failing to file mandatory suspicious activity reports
BofA: Memory sector selloff following Google TurboQuant debut is a buying opportunity
- ▸BofA views memory sector selloff as overreaction to Google TurboQuant technology
- ▸Google raised 2026 AI capex outlook by 100% to $180 billion
- ▸Google TPU v7 features 192GB HBM, a 6x increase over TPUv6
- ▸AI memory demand remains strong despite efficiency gains from compression techniques
- ▸BofA highlights Nvidia, Broadcom, AMD, Lam Research, Applied Materials, Marvell, and Credo as buys
Bank of America digital interactions +14% YoY, Erica assistant hits 3.2B total engagements
- ▸Digital logins and proactive alerts +14% YoY to 30 billion interactions
- ▸Erica AI virtual assistant surpassed 3.2 billion total client interactions
- ▸94% of total client interactions now conducted through digital channels
- ▸CashPro mobile payment approvals reached record $1.2 trillion
- ▸Digital ecosystem includes 25 million active Zelle users
Bank of America Q1 Net Interest Income Tracking 7% Higher Year Over Year
- ▸Q1 net interest income tracking at least 7% higher YoY
- ▸Investment banking revenue expected to rise approximately 10%
- ▸Markets segment revenue trending up in low-double-digit range
- ▸Plans to deploy $25 billion into private-credit transactions
- ▸Launching BofA Rewards loyalty program effective May 27