Bank of America – shares correct following strong results amid broader market weakness

Bank of America’s Q3 2025 report came in above expectations; however, a negative market backdrop and reports of problem and fraudulent loans at other banks triggered a decline across the financial sector.

For Q3 2025, Bank of America Corporation (NYSE: BAC) delivered results that exceeded analyst forecasts. Revenue reached 28.1 billion USD, net income totalled 8.5 billion USD, and earnings per share stood at 1.06 USD. Return on equity came in at 15.4%, notably higher than a year earlier and above market expectations.

The strong performance was driven primarily by higher net interest income and a rebound in investment banking activity. Net interest income rose by 9% year-on-year, while investment banking fees jumped by 43%, supported by increased IPO issuance and M&A activity. Trading operations also performed well, helping the bank beat consensus forecasts for both revenue and profit.

Credit quality remains solid: loan charge-offs declined by 10%, and client card spending rose by 6%, indicating resilient consumer demand and limited default risk.

The outlook for the next quarter is cautiously optimistic: the bank expects net interest income in the range of 15.5–15.7 billion USD, supported by stable loan demand and the benefits from asset repricing.

On 15 October, the day the results were released, Bank of America shares rose by roughly 4.4%, driven by strong financial performance and an improved outlook for Q4 net interest income. However, the stock turned lower on the following day. The decline reflected broader market weakness, as all major indices closed in negative territory (S&P 500 −0.6%, Dow Jones −0.7%, Nasdaq 100 −0.5%). Additional pressure on the banking sector came from reports of problematic and fraudulent loans at several regional lenders, including Zions (NASDAQ: ZION) and Western Alliance (NYSE: WAL). This negative backdrop was the main factor behind the drop in BAC shares.

This article provides a detailed overview of Bank of America Corporation, including a fundamental analysis of Bank of America’s financial results for Q3 and Q4 2024 and Q1–Q3 2025. Based on the observed performance of Bank of America’s share price, the review also includes a technical analysis of BAC stock and presents the Bank of America stock forecast for 2025.

About Bank of America Corporation

Bank of America Corporation is one of the world’s largest financial institutions, offering a broad range of banking and related services. Amadeo Giannini founded the bank in 1904 in San Francisco, US, under the name Bank of Italy, which was rebranded as Bank of America in 1930. The modern corporation emerged in 1998 following a merger with NationsBank.

Bank of America offers a broad range of services, including retail and corporate banking, investment and insurance products, asset management, and mortgage and lending services. Its headquarters are in Charlotte, North Carolina, US.

The bank’s IPO occurred in 1957 when its shares began trading on the New York Stock Exchange under the ticker BAC. Bank of America is among the largest banks in the US and worldwide, serving clients in more than 35 countries and managing assets exceeding 2.4 trillion USD.

Bank of America Corporation’s main revenue streams

Bank of America’s key areas of financial interest, which generate revenue, span various business lines, including retail, corporate, and investment services. These are divided into the following categories:

• Net interest income: generated from the difference between interest received on issued loans and interest paid to clients on deposits and other borrowed funds. Bank of America offers a broad range of financial products, including mortgages, commercial and auto loans, and credit cards
• Commission income: revenue from client transaction fees, including charges for account maintenance, payment and transfer processing, and asset management
• Investment banking income: fees for advisory services on mergers and acquisitions, revenue from equity and bond issuance, and earnings from trading financial instruments such as securities, currencies, and derivatives
• Asset management and insurance income: fees for asset management services, insurance premiums, and returns on investments in insurance-related products
• Trading and market operations: profits from transactions involving securities, currencies, and derivatives
• Other income sources: fees for safe deposit box rentals, returns on investments in sustainable development and infrastructure projects, and profits from holdings of government and corporate bonds

These areas diversify the bank’s revenue streams, making them more resilient to economic crises, and enable Bank of America to compete effectively in the global market.

Bank of America Corporation’s strengths and weaknesses

Bank of America’s strengths include:

• Diversified revenue streams: the bank offers a broad range of financial services, including retail banking, investment services, asset management, corporate banking, and insurance. This diversity strengthens Bank of America’s resilience to market fluctuations across multiple segments and allows it to generate revenue from various sources
• Digital innovation: the bank is actively implementing digital technologies, including mobile apps and the virtual assistant Erica. These innovations enhance service quality, improve operational efficiency, and help attract new clients
• Strong position in investment banking and asset management: the bank’s competitive advantages in investment and private banking, alongside effective asset management, ensure its leadership in both the US and internationally. As a result, it can offer high-quality services to high-net-worth clients and large international corporations worldwide
• Wide network and global presence: the bank has representative offices in more than 35 countries, enabling it to serve clients regardless of location. The bank holds a leading position in both domestic and international markets
• Substantial capital and liquidity reserves: with extensive financial resources and highly liquid assets, the bank is well-equipped to manage risks and maintain stability during economic downturns effectively

Bank of America’s weaknesses include:

• Dependence on interest rates: the bank’s primary revenue stream is derived from the spread between interest earned on loans and interest paid on deposits. This makes it sensitive to changes in financial regulators’ monetary policy and fluctuations in interest rates. During periods of low rates, profitability typically declines
• High operating costs: despite the scale of the corporation and its elevated level of digitalisation, the bank incurs more substantial costs compared to its competitors, including JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC), which negatively affect the overall profitability of the transactions performed
• Weakness in certain retail banking segments: although the bank holds a significant market share in the US, it lags behind competitors such as JPMorgan Chase and Wells Fargo in the retail banking and credit card segments. These banks have a larger client base and more developed service networks

Overall, Bank of America is a strong player in the financial market thanks to its diversification and innovation. However, it faces challenges, including sensitivity to macroeconomic factors and elevated operating expenses.

Bank of America Corporation Q3 2024 results

In October, Bank of America published its report for Q3 2024, which ended on 30 September. The key data from the report is outlined below:

• Revenue: 25.30 billion USD (+1%)
• Net income: 6.90 billion USD (-12%)
• Earnings per share: 0.81 USD (-10%)
• Net Interest income: 14.0 billion USD (-3%)

Revenue by segment:

• Consumer Banking: 10.40 billion USD (-1%)
• Global Wealth and Investment Management: 5.80 billion USD (+8%)
• Global Banking: 5.83 billion USD (-6%)
• Global Markets: 5.60 billion USD (+14%)

Net income by segment:

• Consumer Banking: 2.70 billion USD (-6%)
• Global Wealth and Investment Management: 1.10 billion USD (+1%)
• Global Banking: 1.90 billion USD (-27%)
• Global Markets: 1.50 billion USD (+25%)

Shareholders received nearly 5.60 billion USD, including 2.00 billion in dividends and 3.50 billion through share buybacks.

Despite a 1% increase in total revenue, the bank’s net income declined by 12%, with profits from banking operations in both the global and US consumer markets falling. However, as in the previous quarter, the investment segment continued to show positive momentum, helping to offset the negative impact of the banking services sector.

Bank of America Corporation Q4 2024 results

Bank of America Corporation released its Q4 2024 statistics on 16 January 2025. The key report highlights, compared to the corresponding period of 2023, are outlined below:

• Revenue: 25.3 billion USD (+15%)
• Net income: 6.7 billion USD (+112%)
• Earnings per share: 0.82 USD (+134%)
• Net interest income: 14.4 billion USD (+3%)

Revenue by segment:

• Consumer Banking: 10.6 billion USD (+3%)
• Global Wealth and Investment Management: 6.0 billion USD (+15%)
• Global Banking: 6.1 billion USD (+3%)
• Global Markets: 4.8 billion USD (+20%)

Net income by segment:

• Consumer Banking: 2.8 billion USD (+2%)
• Global Wealth and Investment Management: 1.2 billion USD (+14%)
• Global Banking: 2.1 billion USD (-13%)
• Global Markets: 941 million USD (+27%)

In the Q4 2025 earnings report, Bank of America’s management expressed optimism about the company’s performance and outlook. It was noted that each business line contributed more to revenue, and there was a noticeable increase in deposits and loans granted, surpassing the industry average. Net interest income was projected to range between 14.5 and 14.6 billion USD in Q1 2025, with steady growth expected to bring it to approximately 15.5-15.7 billion USD by Q4 2025. The second half of 2025 was expected to show stronger growth than the first, ensuring an operational advantage throughout 2025.

Bank of America Corporation Q1 2025 results

On 15 April, Bank of America released its report for Q1 2025, which ended on 31 March. Its key highlights are provided below:

• Revenue: 27.37 billion USD (+6%)
• Net income: 7.40 billion USD (+11%)
• Earnings per share: 0.90 USD (+18%)
• Net interest income: 14.44 billion USD (+3%)

Revenue by segment:

• Consumer Banking: 10.49 billion USD (+3%)
• Global Wealth and Investment Management: 6.02 billion USD (+7%)
• Global Banking: 5.97 billion USD (0%)
• Global Markets: 6.58 billion USD (+12%)

Net income by segment:

• Consumer Banking: 2.53 billion USD (-4%)
• Global Wealth and Investment Management: 1.00 billion USD (0%)
• Global Banking: 1.91 billion USD (-3%)
• Global Markets: 1.94 billion USD (+13%)

Bank of America’s Q1 2025 report showed strong results, exceeding Wall Street expectations and instilling cautious optimism in investors. Income growth was primarily driven by trading revenues, especially in the stock sector, which saw a 17% increase amid the general surge in market activity across leading US banks.

Despite the positive results, Bank of America remains cautious about the economic situation. CEO Brian Moynihan noted potential risks associated with new tariffs and global uncertainty. However, he did not expect a recession in the US economy in 2025, with CFO Alastair Borthwick describing the economy as one that is slowly growing.

In Q1 2025, Bank of America increased provisions for possible loan losses from 1.3 to 1.5 billion USD, indicating the bank’s cautious approach to credit risks amid economic uncertainty.

For income-focused investors, the bank maintained its quarterly dividend at 0.26 USD per share, confirming its commitment to returning capital to its shareholders.

For Q2 2025, Bank of America’s management did not issue a specific forecast. However, the bank expects net interest income to grow by 6–7% in 2025 and to reach between 15.5 and 15.7 billion USD by Q4 2025, reiterating the guidance provided in the commentary to the Q4 2024 report. The primary driver of interest income was the consumer services sector.

Bank of America Corporation Q2 2025 earnings results

On 16 July, Bank of America released its Q2 2025 earnings report for the period ended 30 June. The key results are outlined below, compared with the same quarter a year earlier:

• Revenue: 27.51 billion USD (+4%)
• Net income: 7.11 billion USD (+3%)
• Earnings per share: 0.89 USD (+7%)
• Net Interest income: 14.67 billion USD (+7%)

Revenue by segment:

• Consumer Banking: 10.81 billion USD (+6%)
• Global Wealth and Investment Management: 5.93 billion USD (+7%)
• Global Banking: 5.69 billion USD (-7%)
• Global Markets: 6.01 billion USD (+10%)

Net income by segment:

• Consumer Banking: 2.97 billion USD (+14%)
• Global Wealth and Investment Management: 0.99 billion USD (-3%)
• Global Banking: 1.70 billion USD (-19%)
• Global Markets: 1.56 billion USD (+10%)

Bank of America delivered solid quarterly results, with net income in Q2 2025 rising to 7.1 billion USD (89 cents per share), beating analyst expectations and marking a 3% year-on-year increase, even though total revenue came in slightly below forecasts. The main growth drivers were the record net interest income of 14.7 billion USD (+7%) and a sharp rise in trading revenue to 5.3 billion USD (+14%), amid heightened market volatility and geopolitical uncertainty.

Management struck a confident tone. CEO Brian Moynihan noted stable consumer spending, high credit quality, and organic growth in both loans and deposits. The bank has now reported growth in current account numbers for 26 consecutive quarters, while total loan volume rose by 6-8%. The CFO emphasised that net interest income is expected to continue rising and could reach 15.5-15.7 billion USD by Q4, with loan growth projected in the mid-single digits (approximately 4-6%) and operating expenses expected to remain stable or even decline by year-end. Trading income is also expected to grow in the mid-single digits, extending the current 13-quarter streak of positive performance.

The investment banking division remains the main weak point, with fee income down approximately 9% year-on-year, although management expects deal activity to recover towards the end of the year.

In addition, the bank reaffirmed its strategy in the stablecoin segment, outlining plans either to develop its own platform or to form a partnership to create institutional-grade digital payments infrastructure.

Bank of America Corporation Q3 2025 results

On 15 October, Bank of America released its Q3 2025 report for the calendar quarter ended 30 September. The key figures compared with those from the same period a year earlier are as follows:

• Revenue: 28.08 billion USD (+11%)
• Net income: 8.46 billion USD (+23%)
• Earnings per share (EPS): 1.06 USD (+31%)
• Net interest income: 15.23 billion USD (+9%)

Revenue by segment:

• Consumer Banking: 11.16 billion USD (+7%)
• Global Wealth and Investment Management: 6.31 billion USD (+10%)
• Global Banking: 6.26 billion USD (+7%)
• Global Markets: 6.22 billion USD (+10%)

Net income by segment:

• Consumer Banking: 3.44 billion USD (+28%)
• Global Wealth and Investment Management: 1.27 billion USD (+20%)
• Global Banking: 2.13 billion USD (+11%)
• Global Markets: 1.65 billion USD (+4%)

For Q3 2025, Bank of America reported results ahead of expectations. Revenue totalled 28.1 billion USD, net income 8.5 billion USD, and earnings per share 1.06 USD. Return on equity reached 15.4%, exceeding analyst forecasts. The main drivers were the record growth in net interest income and a notable rebound in investment banking fees.

Compared with Q2 2025, the bank’s performance improved. Provisions for potential credit losses fell to 1.3 billion USD (from 1.6 billion USD previously), while loan charge-offs declined by around 10%, indicating stabilisation in the quality of the loan portfolio.

Year-on-year results also showed solid improvement: revenue rose 11%, and earnings per share increased from 0.81 USD to 1.06 USD. Net interest income reached 15.2 billion USD (+9%), supported by higher loan and deposit volumes. Investment banking fees grew 43% to 2.0 billion USD, while trading income rose 9%. Card spending by clients increased 6%, reflecting healthy consumer activity.

Expenses rose moderately – by about 5% – while profit grew at a faster pace. Capital remained strong, with the CET1 ratio at 11.6%. During the quarter, shareholders received a total of 7.4 billion USD: 2.1 billion USD through dividends and 5.3 billion USD via share repurchases.

Management expects Q4 2025 net interest income to reach 15.6–15.7 billion USD, up 8% year-on-year. The bank plans to keep expenses under control and continue shareholder distributions while maintaining strong capitalisation.

Fundamental analysis of Bank of America Corporation

Below is the fundamental analysis of BAC based on the Q3 2025 results:

• Capital and resilience: Bank of America maintains a solid financial foundation. The core capital ratio stands at 11.6%, above the regulatory minimum of 10.0%. This represents a buffer of around 1.6 percentage points, or roughly 28 billion USD above the minimum requirement. The bank’s total Common Equity Tier 1 (CET1) capital amounts to 203 billion USD, with risk-weighted assets (RWA) of about 1.75 trillion USD. This underscores the bank’s strong capacity to withstand market fluctuations and remain resilient even amid credit-portfolio expansion or higher reserve requirements.
• Liquidity and funding: cash and other liquid assets total 961 billion USD. Average customer deposits stand at 1.99 trillion USD, while loans and leases amount to 1.15 trillion USD. The loan-to-deposit ratio is 58%, indicating that the bank is primarily funded through customer deposits and remains largely independent of external borrowing – a conservative and stable structure.
• Dividends and share buybacks: during the past quarter, the bank distributed 7.4 billion USD to shareholders – including 2.1 billion USD in dividends and 5.3 billion USD through share repurchases. These payouts were fully covered by quarterly net profit (8.5 billion USD), meaning no reserves were used. Since July, the dividend has been increased to 0.28 USD per share. A new 40 billion USD share-repurchase program also remains in place, available for use at management’s discretion.
• Profitability and efficiency: revenue reached 28.1 billion USD, up 11% year-on-year. Net income rose 23% to 8.5 billion USD, and earnings per share grew 31% to 1.06 USD. Net interest income hit a record 15.2 billion USD. The bank has become more efficient, with expenses rising more slowly than income.
• Loans and risks: provisions for potential credit losses totalled 1.3 billion USD, while charge-offs on non-performing loans amounted to 1.4 billion USD – lower than in the previous quarter. Credit-card losses declined to 3.46%, indicating an improvement in portfolio quality.

Conclusion of the fundamental analysis of BAC

Bank of America remains in a strong position, with ample capital, liquidity, and a stable funding base. Profit is rising, costs are well-controlled, and shareholder distributions are fully covered by earnings. The main risks include potential interest-rate cuts, expansion of the loan portfolio (which would require additional capital), and fluctuations in investment-related income.

Overall, the bank appears financially sound, and the outlook for the end of 2025, which anticipates further growth in net interest income, remains positive.

Expert forecasts for Bank of America Corp stock in 2025

• Barchart: 17 out of 27 analysts rated Bank of America shares as Strong Buy, 6 as Moderate Buy, and 4 as Hold. The upper-end forecast reaches 66 USD, while the lower-end forecast stands at 47 USD.
• MarketBeat: 21 out of 26 analysts assigned the stock a Buy rating, and 5 recommended Hold. The upper-end forecast is 66 USD, with the lower bound at 42 USD.
• TipRanks: 17 out of 18 analysts rated the shares as Buy and 1 as Hold. The highest target price stands at 66 USD, and the lowest at 50 USD.
• Stock Analysis: 5 out of 17 experts rated Bank of America shares as Strong Buy, 9 as Buy, and 3 as Hold. The upper-end forecast reaches 66 USD, while the lower bound stands at 42 USD.

Bank of America Corporation stock price forecast for 2025

On the weekly chart, Bank of America Corporation shares are trading within an upward channel and have reached its upper boundary, which acts as resistance. Additionally, a divergence has formed on the MACD indicator, signalling a possible price decline. Based on the current performance of BAC shares, the likely price movements for 2025 are as follows:

The base case forecast for Bank of America Corporation shares anticipates a break below support at 49.00 USD, followed by a decline towards 39.00 USD. At this level, the correction in Bank of America shares may come to an end, after which the price is likely to resume its upward movement. The upside target in this case would be the upper boundary of the channel, around 55.00 USD.

The alternative scenario for Bank of America Corporation stock assumes a breakout above the upper boundary of the channel. In this case, the share price could rise towards 66.00 USD.

Risks of investing in Bank of America Corporation

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Risks of investing in Bank of America Corporation shares include several factors:

• Interest rate sensitivity: Bank of America’s profitability is closely tied to interest rates. Rate hikes boost asset returns but also increase the cost of raised deposits, potentially reducing net interest income. If the Federal Reserve begins to lower rates, as some analysts predict, this could negatively impact interest income and BAC stock valuation
• Economic and political uncertainty: a return to the tariff policy under the Trump administration caused market volatility, temporarily increasing trading revenues but also raising uncertainty. Issues in international relations, particularly with China, may affect global markets and reduce BAC’s revenues from international operations
• Lower investment banking revenues: amid uncertainty, market activity in the mergers and acquisitions sector and IPOs has slowed, leading to lower fee income
• Credit risks: increased loan loss provisions suggest that the bank expects a possible rise in defaults, particularly on commercial loans. The share of overdue loans is increasing, which could result in write-offs and lower fee income

Although the Bank of America shows resilience across several areas, investors should consider the above risks as they may exert pressure on the company’s future financial performance.

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