TLDR
- Bank of America reported Q4 2025 earnings of $0.98 per share, beating the $0.96 analyst consensus
- Revenue climbed to $28.37 billion, exceeding forecasts by 2.8% with 6.5% year-over-year growth
- Consumer card spending jumped 6% while 90-day credit card delinquencies improved to 1.27%
- Net interest income rose 10% to $15.8 billion with margins expanding to 2.1%
- Annual profit for 2025 totaled $30.51 billion, up 13% from the prior year
Bank of America wrapped up 2025 with better-than-expected fourth quarter results. The bank reported $7.6 billion in quarterly profit.
That translates to $0.98 per share. Analysts had forecast $0.96.
Consumer behavior drove the performance. Spending across debit and credit cards increased 6% from the same quarter last year.
Bank of America Corporation, BAC
CFO Alastair Borthwick highlighted the strength. He said all available metrics point to resilient consumers in great financial shape.
Credit quality improved during the period. The rate of credit cards past due by more than 90 days fell to 1.27%. A year ago, that figure was 1.35%.
Revenue for the quarter reached $28.37 billion. The total beat Wall Street expectations by a comfortable 2.8%.
Interest Income and Margins Expand
Net interest income grew 10% to $15.8 billion. Analysts had projected $15.68 billion for this key metric.
The bank’s net interest margin widened to 2.1%. Expectations were for 2%.
Provisions for potential credit losses came in at $1.3 billion. That’s lower than the previous year’s amount.
The efficiency ratio landed at 61.5%. Analysts expected 62.7%. A tighter ratio shows better cost control.
Capital Markets Performance Strengthens
Sales and trading revenue from the markets division hit $4.52 billion. That’s a 10% gain versus last year’s fourth quarter.
Investment banking fees climbed to $1.67 billion. Both segments contributed to the earnings outperformance.
Tangible book value per share ended at $28.73. This aligned with analyst estimates and represented 7.5% annual growth.
Full-year 2025 profit came to $30.51 billion. That marks a 13% increase over 2024 results.
The bank maintains relationships with about 67 million consumer and small business clients. Over the past five years, revenue has compounded at a 5.7% annual pace.
JPMorgan shared similar consumer trends this week. CEO Jamie Dimon noted continued spending strength while flagging geopolitical uncertainties.
President Trump recently suggested capping credit card interest rates at 10% for one year. Banking industry representatives have cautioned this could reduce credit availability.
Borthwick declined to discuss the specific proposal. He said the bank backs the administration’s focus on making things more affordable for Americans.
Shares gained 1.3% to $55.06 immediately after the earnings announcement. Investors reacted favorably to the revenue and profit beats.
Analysts project tangible book value per share will grow to $30.55 over the next 12 months. That would represent 6.3% growth from current levels.
