Good: Bank of America tops revenue and EPS, lifts NII outlook as dealmaking rebounds
Good — Bank of America’s Q3 2025 beat was clear, and guidance improved. Revenue (net of interest) was about $28.1B vs roughly $27.5B expected, and EPS came in at $1.06 vs $0.95. Net interest income (NII) hit a record $15.2B, while investment‑banking fees jumped 43% to $2.0B. Shares rose more than 4% in early trading on Oct 15. (reuters.com)
What drove it
NII — the spread between what a bank earns on loans and pays on deposits — rose 9% to a record $15.2B, helped by loan and deposit growth and balance‑sheet positioning. (reuters.com)
Fee strength added to the quarter: investment‑banking fees rose 43% to $2.0B on a rebound in dealmaking. Credit costs eased, with the provision for credit losses down to $1.3B from $1.6B last quarter and $1.5B a year ago. (reuters.com)
Context vs. expectations and last quarter
Against consensus, EPS of $1.06 beat the $0.95 LSEG estimate; revenue of ~$28.1B topped about $27.5B expected. Versus Q2, EPS improved from $0.89 and revenue from $26.5B, showing sequential momentum. (reuters.com)
Year over year, profit grew 23% and revenue rose about 11%, reflecting both higher NII and better fee performance. (reuters.com)
Key figures
Notes: consensus/expectations from LSEG/WSJ reporting; NII and guidance per company commentary. (wsj.com)
| Metric | Q3 2025 | Change | Consensus/Guide | Takeaway |
|---|---|---|---|---|
| Revenue (net of interest) | $28.1B | +11% YoY | ~$27.5B expected | Beat |
| Diluted EPS | $1.06 | +31% YoY | $0.95 expected | Beat |
| Net interest income (NII) | $15.2B | +9% YoY | — | Record |
| Q4 NII outlook | $15.6–$15.7B | ~+8% YoY | Company guide | Raised |
Guidance and stock reaction
Management raised Q4 2025 NII guidance to $15.6–$15.7B (about 8% higher year over year). The stock gained more than 4% after the release, though year‑to‑date it has trailed the KBW Bank Index and some large‑bank peers. (reuters.com)
What to watch next
- Rates and deposit costs: can BAC hold NII near the new guide if funding costs edge up? (reuters.com)
- Dealmaking pipeline: a 43% jump in investment‑banking fees may not repeat if M&A slows. (reuters.com)
- Credit quality: provisions fell this quarter; keep an eye on consumer cards and any commercial exposures. Management said loans tied to bankrupt First Brands are asset‑backed. (reuters.com)
Overall read: a solid beat with healthier credit costs and higher NII guidance — a good print, but execution on fees and the rate path will determine if the momentum holds.