Bank of America Corp. (NYSE:BAC) reported first-quarter fiscal 2026 results on Wednesday, posting higher profit and revenue that exceeded analyst expectations.

Net income rose to $8.6 billion from $7.4 billion a year earlier, while earnings per share came in at $1.11, topping the consensus estimate of $1.00.

Revenue, net of interest expense, increased 7% year over year to $30.27 billion, ahead of estimates of $29.93 billion. The bank said debit and credit card spending climbed 7% to $245 billion during the quarter.

Segment Performance

Consumer Banking generated net income of $3.06 billion, up from $2.53 billion a year ago. Global Wealth and Investment Management reported $1.33 billion, compared with $1.01 billion a year earlier.

Global Banking posted $2.09 billion, up from $1.92 billion, while Global Markets earned $2.01 billion versus $1.95 billion last year.

Net interest income increased 9% year over year to $15.7 billion, driven by higher activity in Global Markets, increased deposit and loan balances, and fixed-rate asset repricing, partially offset by lower interest rates.

Noninterest income rose 5.2% to $14.5 billion. Provision for credit losses declined to $1.3 billion from $1.5 billion a year earlier, while investment banking fees jumped 21% to $1.8 billion.

Balance Sheet and Capital Return

The bank's efficiency ratio improved to 60.89% from 62.59% a year ago. Its Common Equity Tier 1 (CET1) ratio was 11.2%, compared with 11.8% a year earlier. Book value per share increased 7% to $38.66, while tangible book value per share rose to $28.84 from $26.90.

Average loan and lease balances grew 9% to $1.19 trillion, and average deposits rose 3% to $2.02 trillion, marking the 11th consecutive quarter of sequential growth.

The company returned capital to shareholders through about $2.0 billion in dividends and $7.2 billion in share repurchases during the quarter.

Management Commentary and Outlook

Chairman and CEO Brian Moynihan said the company entered 2026 with strong momentum, delivering a 25% year-over-year increase in earnings per share and $8.6 billion in net income, driven by disciplined execution. He added that the bank generated 290 basis points of operating leverage, supporting improvements in returns on equity and assets.

Moynihan said revenue growth was supported by a 9% increase in net interest income and double-digit gains in sales and trading, investment banking, and asset management fees. He also pointed to steady consumer spending and stable asset quality as signs of a resilient U.S. economy despite evolving risks.

“We remain watchful of evolving risks. However, we saw healthy client activity, including solid consumer spending and stable asset quality, indicating a resilient American economy.”

Earnings Call Highlights

During the earnings call, Brian Moynihan said Bank of America reduced its workforce by about 1,070 employees since year-end 2025 through attrition, while maintaining that the macroeconomic backdrop remains constructive.

Management noted the credit environment continues to be benign, with no signs of systemic stress. The CFO added that the bank could see some easing in overall capital requirements under the current regulatory framework.

Executives also emphasized that recent market volatility reflects a repricing of growth expectations for alternative asset managers rather than broader credit deterioration.

Private Credit Exposure

The bank disclosed roughly $20 billion in private credit exposure. CFO Alastair Borthwick said the firm has not seen material losses and continues to monitor portfolios without changing its strategy.

Peers including JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Co. (NYSE:WFC) and Citigroup Inc. (NYSE:C) also outlined their private credit exposure.

JPMorgan CEO Jamie Dimon said he is not particularly concerned, while U.S. Treasury Secretary Scott Bessent said the market does not pose systemic risk, Bloomberg reported.

BAC Price Action: Bank of America shares were up 1.71% at $54.26 at the time of publication on Wednesday, according to Benzinga Pro data.

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