Bank of America Posts $8.5 Billion in Q3 Profit as EPS Surges 31%

Bank of America delivered robust financial results for the third quarter of 2025, reporting net income of $8.5 billion and diluted earnings per share (EPS) of $1.06, marking a 31% year-over-year increase.

Total revenue rose 11% to $28.1 billion, fueled by strength across core banking, investment banking, and market-facing businesses. Net interest income (NII) increased 9% to $15.2 billion ($15.4 billion on a fully taxable-equivalent basis), reaching a record level for the company. This marks the fifth consecutive quarter of sequential NII growth, underscoring effective balance sheet positioning and continued loan and deposit expansion.

Chair and CEO Brian Moynihan attributed the strong results to consistent execution across business lines. “Strong net income growth drove third quarter diluted earnings per share up 31% from last year. This in turn drove strong improvement in our returns on assets and equity,” said Moynihan.

“Strong loan and deposit growth, coupled with effective balance sheet positioning, resulted in record net interest income. We also saw strong fee performance from our market-facing businesses. As revenues grew at a much faster rate than expenses, we drove good operating leverage and an efficiency ratio below 62%,” he said.

Investment banking fees were a standout, rising 43% to over $2 billion, reflecting a rebound in deal activity and strong performance across advisory and underwriting. The bank ranked third among all firms in investment banking fees for the quarter, gaining 136 basis points in market share. Global Banking posted net income of $2.1 billion, supported by double-digit growth in deposits and steady lending across the middle market.

The Global Markets division continued its momentum, delivering net income of $1.6 billion. Sales and trading revenue climbed 9% to $5.4 billion, marking the 14th consecutive quarter of year-over-year growth. Equities revenue rose 14% to $2.3 billion, while Fixed Income, Currencies and Commodities (FICC) revenue increased 5% to $3.1 billion.

Global Wealth and Investment Management (GWIM) generated $1.3 billion in net income on revenue of $6.3 billion, up 10% year-over-year. Asset management fees surged 12% to $3.9 billion, driven by higher market valuations and strong asset flows. Client balances rose 11% to $4.6 trillion, while average loans and leases grew 9% to $246 billion. The business added approximately 5,400 net new client relationships across Merrill and the Private Bank, with 86% of clients now digitally active.

Operating efficiency improved notably. Noninterest expenses rose 5% to $17.3 billion, primarily due to higher revenue-related compensation and strategic investments in technology and talent. However, revenue growth significantly outpaced expense increases, driving operating leverage and improving the efficiency ratio by 329 basis points to 62%.

Provision for credit losses decreased to $1.3 billion, down from $1.5 billion in the prior-year quarter and $1.6 billion in the previous quarter. Net charge-offs declined to $1.4 billion, further reinforcing the bank’s credit quality. Average loans and leases rose 9% year-over-year to $1.15 trillion, with growth across every business segment. Average deposit balances increased 4% to $1.99 trillion, extending the streak of sequential quarterly growth to nine quarters.

Bank of America’s balance sheet remains strong. The bank reported a Common Equity Tier 1 (CET1) capital ratio of 11.6% under the standardized approach, well above regulatory minimums. CET1 capital increased by 1% to $203 billion. The firm returned $7.4 billion to shareholders during the quarter, including $2.1 billion in common stock dividends and $5.3 billion in share repurchases. The quarterly dividend was increased by 8%. Book value per common share rose 7% to $37.95, while tangible book value per share climbed 8% to $28.39.

Return on average common shareholders’ equity was 11.5%, while return on average tangible common shareholders’ equity reached 15.4%. Return on average assets was 0.98%, reflecting enhanced profitability.

Alastair Borthwick, Bank of America CFO, emphasized the benefits of Bank of America’s diversified model. “This quarter’s performance demonstrated the earnings power of our diversified model. We believe our investments in technology, talent and client experiences aided in an improved efficiency ratio as well as operating leverage,” said Borthwick.

“Our strong capital position enabled us to support clients, growing average loans by $25 billion from the second quarter, and to return $7.4 billion to shareholders through dividends and share repurchases,” he said.