Bank of America's Revenue Rises 4% in Solid Q2 2025

Bank of America reported solid financial results for the second quarter of 2025, with net income reaching $7.1 billion, an increase of 2.9% compared to $6.9 billion in the same period last year. Revenue, net of interest expense, rose 4.3% year-over-year to $26.5 billion. Diluted earnings per share (EPS) for the quarter were $0.89, up from $0.83 in Q2 2024, slightly exceeding analyst estimates of $0.86 per share. This marks the fourth consecutive quarter of sequential Net Interest Income (NII) growth.

Key Business Segment Performance

The Consumer Banking segment reported a net income of $3.0 billion, driven by a 6% increase in revenue to $10.8 billion. This growth was primarily fueled by higher NII, with average deposits modestly higher at $952 billion. Average loans and leases in this segment also saw a 2% increase to $319 billion. Digital usage continued to be strong, with 49 million active digital banking users and 4.1 billion digital logins, an 18% increase year-over-year.

Global Wealth and Investment Management (GWIM) achieved a net income of $1.0 billion. Revenue for GWIM increased 7% to $5.9 billion, primarily due to a 9% rise in asset management fees. This was supported by strong AUM flows and higher market levels, contributing to a 10% increase in client balances to $4.4 trillion. Average loans and leases within GWIM grew 7% to $237 billion.

Global Banking reported a net income of $1.7 billion, though revenue decreased 6% to $5.7 billion. This decline was attributed to lower NII, leasing revenue, and investment banking fees, partially offset by higher treasury service charges. Despite the revenue decrease, average deposits increased 15% to $603 billion, and average loans and leases grew 4% to $388 billion. Global Markets recorded a net income of $1.5 billion, with revenue increasing 10% to $6.0 billion, largely driven by a 14% rise in sales and trading revenue.

Management Commentary and Balance Sheet Strength

Chairman and CEO Brian Moynihan highlighted the solid quarter, emphasizing the 7% increase in earnings per share and the continued NII growth. He noted the resilience of consumers with healthy spending and asset quality, along with rising commercial borrower utilization rates. CFO Alastair Borthwick reiterated the strength of the balance sheet, with asset quality remaining strong and net charge-offs flat for the sixth consecutive quarter. Consumer delinquencies showed stabilization, while commercial nonperforming loans declined sequentially.

The company's balance sheet remained robust, with average deposit balances up 3% to $1.97 trillion, marking the eighth consecutive quarter of sequential growth. Average loans and leases increased 7% to $1.13 trillion, with growth across all business segments. Bank of America also returned $7.3 billion to shareholders during the quarter through common stock dividends and share repurchases, and announced plans to increase the quarterly common stock dividend by 8% starting in Q3 2025.