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Bank of America (BAC) is trading sharply higher after delivering its biggest EPS beat since 4Q23, continuing the positive earnings trend seen across the big banks. Strong growth on both the top and bottom lines led to record net interest income, driven by solid operating leverage and consistent momentum across all business units as the bank heads into 2026.

• Consumer Banking remained a standout, posting $3.4 bln in after-tax earnings, up 28% yr/yr, with 600 bps of operating leverage. BAC added 212,000 net new checking accounts, marking its 27th consecutive quarter of growth.
• Global Wealth & Investment Management reported net income of nearly $1.3 bln, up 19% yr/yr, fueled by strong Merrill and Private Bank advisory performance. Lending in this segment grew by $12 bln in Q3, while client balances topped $4.6 trillion, helped by $84 bln in AUM flows over the past year.
• Global Banking saw rising client activity in investment banking, with fees (excluding self-led deals) jumping 43% yr/yr to $2.0 bln, driven by strong M&A and capital raising activity.
• Credit quality improved, with provision for credit losses down to $1.3 bln from $1.6 bln in Q2. Consumer net charge-offs of $978 mln decreased $81 mln vs Q2, and the credit card charge-off rate improved to 3.46% from 3.82% in Q2 and 3.70% a year ago.

BAC's results echoed trends seen in recent reports from JPM and GS — particularly in investment banking, which has seen a resurgence amid strong equity markets and increased M&A activity. Trading also benefited from market momentum, while credit quality improvements further buoyed investor sentiment.

Briefing.com Analyst Insight:

Bank of America delivered an across-the-board beat with solid contributions from every business unit, particularly Consumer Banking and Wealth Management. The improvement in credit quality and the continuation of net interest income strength give BAC a solid footing heading into FY26. However, while BAC is benefiting from sector-wide tailwinds like stronger IB and improving credit, questions remain around sustainability once the rate tailwind fades. Still, the stock looks reasonably valued and may appeal to investors looking for broad-based financial exposure with improving fundamentals.