Bank of America Corp (NYSE:BAC) shares are trading lower on Wednesday after the company reported fourth-quarter fiscal 2025 financial results.
• Bank of America stock is among today’s weakest performers. What’s behind BAC decline?
Earnings Snapshot
The bank reported a net income of $7.6 billion (down from $6.80 billion a year ago) and EPS of 98 cents, beating the analyst consensus estimate of 96 cents.
Revenue, net of interest expense, increased 7% year-over-year to $28.532 billion, beating the analyst consensus estimate of $27.944 billion.
In 2026, Bank of America expects a net interest income growth of 5%-7% Y/Y. It expects a first-quarter net interest income growth of ~7% Y/Y.
Analyst View
Goldman Sachs analyst Richard Ramsden views these results as exceeding expectations, with a core PPNR of $11.1 billion, 14% above GSe and 9% above the Street (VA consensus data).
This is driven by slightly higher NII, stronger core fees, and improved core operating efficiency, adds the analyst.
Ramsden says that the core ROTCE came in at 14.4%, roughly 75 basis points above Street estimates.
The analyst expects the focus on the guidance for NII, which is projected to be in line with or slightly above expectations.
Ramsden says that he seeks further clarity on the drivers behind the stronger 2026 NII outlook, given robust NIM trends but slightly slower balance sheet growth in the quarter.
The analyst adds that Goldman Sachs is seeking further clarity on the factors driving the stronger 2026 NII outlook, given robust NIM trends despite slightly slower balance sheet growth, as well as on capital returns, including $6.3 billion in share repurchases versus expectations and the potential impact of upcoming capital reforms.
The analyst writes that they are also watching the sustainability of trading revenue after the fourth quarter's 10% Y/Y increase, the pace of improvement in investment banking, and the timing and magnitude of credit normalization and reserve builds.
Ramsden rates the company Buy with a price forecast of $64.
BAC Price Action: Bank of America shares are down 4.97% at $51.85 at publication on Wednesday.
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