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Bank of America (NYSE: BAC) reported a stronger-than-expected third-quarter performance on Wednesday, buoyed by solid loan and deposit growth, a surge in investment banking activity, and higher interest income — signaling robust momentum across its core businesses despite a challenging macro backdrop.
Earnings Beat Across Key Segments
The U.S. banking giant posted net interest income (NII) of $15.23 billion, up 9% year-on-year and above analysts’ forecasts of $15.03 billion, according to Bloomberg estimates. The figure underscores the bank’s ability to benefit from higher lending volumes even amid moderating interest rates.
For the current quarter, NII is projected between $15.6 billion and $15.7 billion, roughly 8% above the prior-year period and slightly ahead of consensus estimates.
Total revenue, net of interest expenses, came in at $28.1 billion, while diluted earnings per share rose to $1.06, both topping market expectations.
Investment Banking Rebound Fuels Global Banking Division
BofA’s global banking unit saw a 43% surge in investment banking fees, topping $2 billion — its highest in over two years — as dealmaking and capital markets activity rebounded following a tariff-driven slump earlier in 2025. The division’s total revenue climbed 7% to $6.2 billion, benefiting from increased client activity and underwriting demand.
Meanwhile, the global wealth and investment management division recorded a 10% jump in revenue to $6.3 billion, fueled by an uptick in asset management fees and higher client balances, reflecting the boost from elevated stock market valuations.
Capital Returns and Market Reaction
Bank of America highlighted strong shareholder returns, distributing $7.4 billion through a combination of dividends and share buybacks. Investors are now keenly watching for updates on capital management strategy during the bank’s Investor Day in November, where guidance on future buyback pace could be a key catalyst.
Following the announcement, BofA shares rose more than 5% in premarket trading, reflecting investor confidence in the bank’s ability to navigate interest rate uncertainty and capitalize on the resurgence in global deal activity.
Outlook
Analysts suggest that Bank of America’s diversified revenue base — spanning lending, wealth management, and investment banking — positions it well for a period of gradual monetary easing. With loan growth resilient and fee income strengthening, BofA’s results hint at continued momentum heading into the final quarter of 2025.
