Bank of America Corp. (BAC) reported Thursday that net income applicable to common shareholders for the fourth quarter grew 30 percent to $6.77 billion from last year's $5.21 billion, with earnings per share increasing to $0.82 from $0.59 in the prior year, reflecting strong operating leverage as revenues grew faster than expenses.
On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.76 per share for the quarter. Analysts' estimates typically exclude special items.
The provision for credit losses improved by $542 million to a benefit of $489 million, driven by asset quality and macroeconomic improvements, partially offset by loan growth; net reserve release of $851 million.
Total revenue, net of interest expense, increased 10 percent to $22.06 billion from $20.10 billion in the prior-year quarter. Wall Street expected revenues of $22.23 billion for the quarter.
Net interest income was $11.41 billion, up 11 percent from last year, driven by strong deposit growth and related investment of excess liquidity.
Non-interest income also grew 8 percent to $10.65 billion from last year, primarily reflecting record asset management fees and record investment banking revenue.
Noninterest expense increased 6 percent to $14.73 billion, reflecting higher revenue-related incentive compensation, partially offset by lower COVID-19 related costs.
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May 15, 2026 15:25 ET Apart from the confirmation of Kevin Warsh as the next Fed chair, the main news on the economics front this week included key price data from the U.S. and the first quarter economic growth figures from major economies. Both consumer prices and producer costs have started to reflect the effect of supply shocks due to the Middle East conflict. In Europe, GDP data was in focus, while inflation data from China dominated the news flow in Asia.