Bank of America reported first-quarter 2026 net income of $7.4 billion, or $0.90 per diluted share, an 11% increase from the year-ago period that beat the consensus estimate of $0.82 per share. Total revenue net of interest expense reached $27.4 billion, also ahead of forecasts, as the Charlotte-based lender demonstrated broad-based earnings power across its consumer, wealth management, and institutional businesses.
CEO Brian Moynihan struck an optimistic tone on the earnings call, noting that BofA's 69 million consumer clients spent 5% more year-over-year in Q1, defying recession concerns. Card spending volume hit a record $267 billion for the quarter, with particularly strong activity in travel, dining, and home improvement categories. Moynihan said the U.S. consumer 'continues to demonstrate remarkable resilience.'
Trading Desk Posts Best Q1 in Five Years
Global Markets revenue climbed to $6.2 billion, the division's best first quarter since 2021, as geopolitical volatility and elevated commodity prices created substantial client hedging and flow activity. Fixed income, currencies, and commodities revenue surged 16% to $4.1 billion, driven by outsized performance in energy derivatives and emerging market rates. Equities revenue rose 9% to $2.1 billion.
Investment banking fees recovered to $1.63 billion, up 28% year-over-year, as the leveraged finance market reopened after a cautious Q4 2025. Advisory fees from M&A transactions nearly doubled, reflecting a pipeline that built through late 2025 and is now closing.
Net Interest Income Outlook Stabilizes
Net interest income came in at $14.6 billion, roughly flat with Q4 2025 and slightly ahead of management guidance. CFO Alastair Borthwick reiterated full-year 2026 NII guidance of $59-60 billion, reflecting confidence that deposit repricing tailwinds and loan growth will offset further rate cuts from the Federal Reserve. Provision for credit losses rose modestly to $1.48 billion from $1.35 billion a year ago, with delinquency trends remaining manageable.
Shares of Bank of America rose 2.8% following the results. With peers JPMorgan and Wells Fargo also posting strong quarters, the KBW Bank Index extended its year-to-date gain to 7.4%, significantly outpacing the broader S&P 500.