Bank of America inches past estimates, buoyed by net interest income

• Key Insight: Bank of America’s earnings narrowly surpassed Wall Street’s expectations in the fourth quarter of 2025.
• Supporting Data: BofA’s earnings per share reached $0.98 in last year’s final quarter, edging past analysts’ estimates of $0.96, according to S&P.
• Expert Quote: “While any number of risks continue, we are bullish on the U.S. economy in 2026,” said CEO Brian Moynihan.

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NEW YORK — Bank of America edged past Wall Street’s expectations in the final quarter of 2025, nudged upward by rising net interest income and asset management fees.

Earnings per share for the nation’s second-largest bank were $0.98, just above analysts’ consensus estimate of $0.96, according to S&P. Net income reached $7.65 billion, beating estimates of $7.15 billion and marking a 12% increase from the same period in 2024.

“Bank of America’s fourth quarter results capped off a strong year of earnings,” CEO Brian Moynihan said in a statement. “With solid revenue growth, positive operating leverage and a lower efficiency ratio, we improved returns year-over-year for both the full year and the quarter.”

BofA’s revenue in the fourth quarter was $28.37 billion, up 7% year-over-year and surpassing analysts’ forecasts of $27.74 billion, per S&P.

The bank’s revenue growth was largely attributable to a rise in net interest income, which was up 10% year-over-year, reaching $15.75 billion. Asset management fees also rose 13% over the prior year to $4.19 billion.

The earnings numbers arrive during a politically tumultuous week, as President Trump threatens Federal Reserve Chairman Jerome Powell with a potential indictment and calls for a 10% cap on credit card interest rates. Meanwhile, inflation has remained stubborn and a December jobs report showed signs of a cooling labor market.

Despite those headwinds, Moynihan said he was optimistic about the macroeconomic environment coming into the new year.

“With consumers and businesses proving resilient, as well as the regulatory environment and tax and trade policies coming into sharper focus, we expect further economic growth in the year ahead,” the CEO said. “While any number of risks continue, we are bullish on the U.S. economy in 2026.”

The fourth quarter earnings also come two months after BofA’s first investor day in 15 years, during which the bank set several slightly more ambitious medium-term financial targets for its future.

At that event, BofA set a 16-18% goal for return on tangible common equity, or ROTCE, within the next three-to-five years, a hair above the bank’s usual mid-teens guidance. In addition, the bank predicted that its EPS would rise by 12% or more in the next three-to-five years — a type of guidance that BofA had never issued before.

In the earnings materials released on Wednesday morning, BofA did not immediately comment on those targets. But it did post that its ROTCE was 14% in the fourth quarter, and reached 14.2% for 2025 as a whole.

At November’s investor day, analysts had asked the bank’s leaders why the new ROTCE target was capped at 18%.

“There is no cap to our ambition,” Moynihan said at the time.

On Wednesday, chief financial officer Alastair Borthwick — who was recently given the additional title of executive vice president — echoed Moynihan’s bullish tone for the coming year.

“With strong liquidity and capital, as well as healthy asset quality, we enter 2026 focused on driving core growth, market share gains and improved profitability,” Borthwick said in a statement.