Bank of America (BAC) kicked off 2025 with a solid first quarter, delivering net income of $7.4 billion or $0.90 per diluted share, marking an 11% and 18% year-over-year increase, respectively. The results reflect strong underlying performance, with total revenue rising 6% to $27.4 billion, bolstered by gains across both interest and noninterest income. Net interest income (NII) grew 3% to $14.4 billion, while noninterest income jumped 10% to $12.9 billion, helped by higher fee revenues and market-related gains.

BAC maintained credit discipline, with a $1.48 billion provision for credit losses, up from $1.32 billion last year, and net charge-offs holding steady at $1.45 billion, primarily driven by credit cards. Despite some increase in expenses—noninterest expense rose 3% to $17.8 billion—the bank posted improved returns, including a 13.94% return on average tangible common equity, up from 12.73% a year ago, and 0.89% return on average assets.

Segment results were mixed. Consumer Banking saw revenue grow 3% to $10.5 billion, yet net income declined 5% to $2.5 billion, pressured by higher costs and credit provisions. Global Wealth and Investment Management (GWIM) delivered 8% revenue growth to $6.0 billion, led by a 15% increase in asset management fees, though net income held steady at $1.0 billion. Meanwhile, Global Banking posted a 4% decline in net income to $1.9 billion, as flat revenue and higher expenses offset lower credit costs. On the other hand, Global Markets was a bright spot, with net income up 13% to $1.95 billion, driven by a 12% revenue gain and robust trading performance, particularly in equities (+17%) and FICC (+5%).

On the balance sheet, total assets reached $3.35 trillion, an increase of $88 billion from year-end 2024. Deposits grew to $1.99 trillion, marking the seventh consecutive quarter of growth, and loans and leases rose 4% year-over-year to $1.11 trillion. Capital and liquidity remained strong, with a CET1 ratio of 11.8% and $942 billion in global excess liquidity. The bank returned $6.5 billion to shareholders through dividends and share buybacks, and tangible book value per share increased 9% to $27.12.

Management reiterated a cautiously optimistic outlook, citing stable economic conditions and no anticipated recession in 2025. Net interest income is expected to grow 6–7% for the full year, with a Q4 exit rate of $15.5–$15.7 billion. Expense growth for the year is projected at 2–3%, potentially skewing higher depending on fee revenue trends. BAC emphasized its strong credit profile, diversified loan book, and robust capital position, noting its readiness to adjust capital returns as market conditions evolve. Investments in digital capabilities, client relationships, and global platforms remain central to BAC’s growth strategy heading into the rest of the year.