Bank of America (NYSE:BAC) Issues Earnings Results

Bank of America Corporation (NYSE:BAC) posted its quarterly earnings data on Wednesday. The financial services provider reported $1.08 EPS for the quarter, missing the consensus estimate of $1.10 by ($0.02), FiscalAI reports. Bank of America had a net margin of 16.80% and a return on equity of 12.15%. The firm had revenue of $29.96 billion during the quarter, compared to analysts’ expectations of $30.58 billion. During the same quarter last year, the business posted $1.06 EPS. The company’s quarterly revenue was up 3.2% on a year-over-year basis.

Here are the key takeaways from Bank of America’s conference call:

• Regulatory settlement: Bank of America recorded a $1.2 billion non-tax-deductible settlement charge related to AML and compliance matters, reducing reported third-quarter EPS by $0.17. Management said remediation costs are already embedded in the expense base and the regulatory matter is now resolved.
• Strong core banking momentum: Excluding the settlement, net income was approximately $8.1 billion, or $1.08 per share. Loans grew for the tenth consecutive quarter, deposits exceeded $2 trillion, and management expects net interest income to rise about 8% or more in 2027.
• Healthy client activity and credit quality: Consumer spending increased 5% year over year, commercial loans rose 8%, wealth-management flows remained strong, and card balances grew nearly 5%. The net charge-off ratio improved to 44 basis points, while consumer delinquencies and commercial criticized assets declined.
• Markets and investment banking were weaker: Sales and trading revenue declined 5% year over year, with FICC revenue down 17% as higher interest rates reduced activity in credit, mortgages, and municipals. Investment-banking revenue also fell from a strong prior-year comparison, although management cited healthy pipelines.
• Capital and efficiency outlook: CET1 declined to 10.9% after loan growth, the settlement charge, and higher rates, but remained above regulatory minimums; the bank returned $8.3 billion to shareholders. Management expects operating leverage to resume in the fourth quarter and continues to target 200–300 basis points of medium-term improvement.

Bank of America Stock Performance

Shares of BAC opened at $51.65 on Friday. The stock’s 50-day simple moving average is $59.29 and its 200 day simple moving average is $56.72. The company has a debt-to-equity ratio of 1.17, a quick ratio of 0.82 and a current ratio of 0.82. Bank of America Corporation has a 52-week low of $46.12 and a 52-week high of $65.22. The stock has a market capitalization of $361.15 billion, a price-to-earnings ratio of 12.27, a price-to-earnings-growth ratio of 0.83 and a beta of 1.21.

Bank of America Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were given a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 2.5%. This is a boost from Bank of America’s previous quarterly dividend of $0.28. The ex-dividend date was Friday, September 4th. Bank of America’s dividend payout ratio (DPR) is presently 29.36%.

Wall Street Analysts Forecast Growth

BAC has been the topic of a number of research analyst reports. Truist Financial cut their target price on Bank of America from $62.00 to $58.00 and set a “buy” rating on the stock in a research note on Thursday. UBS Group reduced their price objective on Bank of America from $70.00 to $67.00 and set a “buy” rating for the company in a research note on Monday, October 5th. Jefferies Financial Group reduced their price objective on Bank of America from $75.00 to $70.00 and set a “buy” rating for the company in a research note on Thursday, September 24th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Bank of America in a research report on Tuesday, July 21st. Finally, HSBC began coverage on Bank of America in a research report on Monday, September 28th. They set a “buy” rating and a $65.00 target price for the company. Twenty investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, Bank of America currently has an average rating of “Moderate Buy” and a consensus price target of $62.52.

Trending Headlines about Bank of America

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Management expects net interest income to grow at least 8% in 2027, supported by loan and deposit expansion. Consumer banking and wealth management also posted growth, while Merrill Lynch’s fee-based advisory assets reached a record $1.9 trillion. BAC Q3 Earnings Call Highlights
• Positive Sentiment: Despite recent estimate reductions, several analysts still see upside. Citigroup lowered its price target to $60 and Truist to $58, while Baird upgraded BAC to outperform with a $62 target. These targets imply potential recovery if regulatory and earnings concerns ease.
• Neutral Sentiment: Bank of America disclosed several changes in indirect holdings of Turkish companies through Merrill Lynch subsidiaries. The transactions appear to be routine portfolio or client activity and are unlikely to materially affect BAC’s earnings.
• Negative Sentiment: Third-quarter adjusted earnings per share came in at $1.08, below the $1.10 consensus, while revenue of roughly $30.0 billion also missed estimates. Profitability was pressured by weaker fixed-income trading, investment-banking activity, higher expenses and settlement-related costs. Bank of America Earnings and Fine
• Negative Sentiment: The U.S. government imposed approximately $1.2 billion in penalties over anti-money-laundering, Bank Secrecy Act and sanctions-compliance failures, including delayed reporting of more than $5 billion in suspicious transactions. The charge reduced quarterly earnings and raises concerns about remediation expenses, oversight and reputational damage.
• Negative Sentiment: Multiple law firms have announced shareholder investigations following the stock’s decline. These notices do not establish wrongdoing, but they add headline risk and could increase legal and governance costs.

About Bank of America

Bank of America Corporation (NYSE:BAC) is a diversified financial services company serving individual consumers, small businesses, middle-market companies and large corporations. Its principal businesses include consumer banking, wealth and investment management, commercial banking, corporate and investment banking, and sales and trading.

Through its banking and financial services businesses, the company offers deposit accounts, credit cards, mortgages, home equity products, consumer and business loans, payment services, treasury management, brokerage services and investment advice.